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• [Sport] Two men deny spying for China
• World first for Chinese scientists in terahertz wireless communication technology
• China’s Olympic star twins aim to broaden horizons during Hong Kong studies, inspire youth
• EU leaders back extra Chinese EV tariffs despite split vote
• Why China’s EV start-ups can now breathe a little easier
• Outrage as China tourist strikes Winnie the Pooh actor at Shanghai Disneyland, causing fall
• 190 Chinese workers among 250 detained in Philippine scam farm raid
• China, Vietnam drag down Asean+3 economic growth forecast
• EU votes to impose tariffs on Chinese-made EVs in blockbuster trade spat
• Indonesia’s enforcement ‘weakness’ exposed in Chinese man’s trial on illegal mining
• Stars’ National Day messages for mainland China spark cross-strait controversy
• In China’s quest for ‘patient capital’, insurance funds may fit the bill
• South African avocados head to China as demand for the superfood soars
• [Sport] EU to vote on import taxes on Chinese electric cars
• Meituan co-founder cashes out US$44.3 million amid Chinese stock rally
• Foreign investors ‘seek shelter’ in undervalued Chinese assets, but scepticism remains
• What time is it on the moon? China and the US are racing to decide
• China’s Liaoning aircraft carrier puts jets through paces after skirting Japanese atoll
• ‘Little emperors’ in China, Malaysia’s durian trademark: SCMP’s 7 highlights
• Shock video of China bride taped to phone pole sparks debate over vulgar wedding hazing
• [Sport] As communist China turns 75, can Xi fix its economy?
• Chinese smart-glasses maker Even Realities puts displays first in alternative vision to Meta
• China’s fiscal package needs to be sizeable to be effective, maintain momentum: economist
• Why do so many Chinese officials fall for fake promises of political charlatans?

[Sport] Two men deny spying for China

https://www.bbc.com/news/articles/c9qve471ydqo

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World first for Chinese scientists in terahertz wireless communication technology

https://www.scmp.com/news/china/science/article/3281087/world-first-chinese-scientists-terahertz-wireless-communication-technology?utm_source=rss_feed

Faster long-distance data transmission is a step closer, according to a team of Chinese scientists who say they have transmitted high-definition video signals over more than a kilometre using terahertz wireless communication technology.

The experiment, led by Purple Mountain Observatory of the Chinese Academy of Sciences (CAS), was the world’s first successful application of high-sensitivity superconducting receiver technology in long-distance terahertz wireless communication systems, according to the observatory.

Terahertz (THz) radiation is an electromagnetic wave that lies between the microwave and infrared frequency bands, a relatively unoccupied part of the electromagnetic spectrum. Terahertz technology is known for being a powerful imaging tool for security screening and medical diagnostics.

It is a key technology being explored by scientists for 6G and future ultra-fast wireless communication due to its ability to carry large amounts of data.

It could also prove crucial for communication in space, according to the team, enabling massive real-time data transmission.

Scientists have been trying to overcome bottlenecks such as severe signal attenuation that hinders long-range terahertz communication.

The team said transmission distances could be significantly increased by integrating ultra-sensitive terahertz telescopes with terahertz communication systems in certain environments.

“Think of microwave communication as a two-lane road. Terahertz communication is like widening that road to six or eight lanes because of the broader and richer spectrum,” Li Jing, a CAS research professor who worked on the experiment, told state broadcaster CCTV.

“The superconducting detection technology we used in this experiment has high sensitivity. It is like driving high-performance cars on this wider road – almost no energy is lost, allowing signals to travel much farther,” she said.

The five-day experiment began last Friday in the northwest province of Qinghai, where the submillimetre-wave astronomical observation base sits at an altitude of around 4,300 metres (14,107 feet) on the Qinghai-Tibet Plateau.

Purple Mountain Observatory researches high-energy astrophysics, solar physics and space astronomical exploration technology, as well as star formation through the universe and the corresponding terahertz technology.

The team also included scientists from the China Academy of Engineering Physics, Shanghai Normal University, China Electronics Technology Group Corporation, Technical Institute of Physics and Chemistry of CAS, and the Changchun Institute of Optics, Fine Mechanics and Physics of CAS.

During the experiment, the signal transmission strength from the source was 10 microwatts – about one-millionth of the output from a typical mobile phone base station, according to state broadcaster CCTV.

Despite such a weak signal, the researchers said they received a high-definition video transmitted from a distance of 1.2km (0.75 miles) using their terahertz superconducting receiver.

It was the longest terahertz wireless communication transmission experiment achieved to date in the frequency range above 0.5THz, the observatory said.

It also laid a “critical technical foundation for future space and air-to-ground high-capacity terahertz communication, as well as the construction of a multidisciplinary platform at the submillimetre-wave observatory,” according to CCTV.

Chinese scientists started studying terahertz astronomical detection technology in the 1990s, CCTV said.

Now, after decades of research, Chinese scientists were at the forefront of superconducting detector technology, Purple Mountain Observatory radio astronomer Shi Shengcai, who is also an academician at CAS, told CCTV. This put them in a good position to progress in terahertz communication systems and make use of the observational site on the Qinghai-Tibet Plateau.

China’s Olympic star twins aim to broaden horizons during Hong Kong studies, inspire youth

https://www.scmp.com/news/hong-kong/education/article/3281161/chinas-olympic-star-twins-aim-broaden-horizons-during-hong-kong-studies-inspire-youth?utm_source=rss_feed

Twin sisters who won China’s first gold medal in the duet artistic swimming event at the Paris Olympics have said they want to inspire younger generations with their achievements and gain international experience while studying in Hong Kong.

Wang Liuyi and Wang Qianyi, who won gold medals in both the duet and team events in artistic swimming in Paris, started their doctoral studies at the Education University of Hong Kong (EdU) last month.

“Our achievements today are based on the efforts of generations of athletes in the artistic swimming team,” Wang Qianyi, the younger of the two, said on Friday.

“It matches with the ideals of Education University, to cultivate generations of educators and teach young children. I hope I can be one of them, to help and inspire the next generation.”

The 27-year-old twins said they hoped their doctoral studies in education, which will last for at least three years, would also take them to a broader international stage.

“We hope not only to develop vertically in the field of sports but also to become a comprehensive talent,” Wang Qianyi told a sharing session with about 200 promary school pupils students and faculty from the university.

She added that they aimed for international careers, such as joining World Aquatics, the governing body for their sport, or becoming high-level judges.

“The academic atmosphere in Hong Kong is good and it is a metropolitan city with so many opportunities and resources. Studying here can help broaden our horizons and gain more international experiences,” Wang Liuyi said.

In terms of unforgettable experiences in Hong Kong, Wang Liuyi said she truly enjoyed morning tea, with shrimp dumplings and siu mai being her favourite dim sum.

She also loved the view from The Peak, describing her last visit with fellow Chinese Olympians as a true “meet at the top,” surrounded by the stunning Hong Kong skyline and many gold medallists.

As they are still part of the Chinese national team, the sisters are discussing their study arrangements with their mentors, Sun Fenghua and Andy Tse Choi-yeung, two associate professors at the university’s department of health and physical education.

“Our school has prepared tailored special arrangements for them based on their training schedule,” Sun said.

In 2018, EdU became the first institution in Hong Kong to be an “Elite Athlete Friendly University”. In 2021, it announced a fund to provide scholarships for Olympians studying on campus and support them in pursuing a dual career.

Hong Kong table tennis players Doo Hoi-kem and Lee Ho-ching, both bachelor’s degree students at the university, were among the first batch to receive full scholarships for postgraduate studies.

EU leaders back extra Chinese EV tariffs despite split vote

https://www.theguardian.com/business/2024/oct/04/eu-chinese-ev-tariffs-split-vote-germany-car-firms

EU leaders have given the green light to extra tariffs on electric vehicles from China despite opposition from five countries including Germany, where car manufacturers condemned the decision as a potential “fatal” blow for the auto industry.

The European Commission – which provisionally approved the step in June after an inquiry found that Beijing’s state aid to auto manufacturers was unfair – now has free rein to impose steep tariffs for five years from the end of this month.

The tariffs of up to 35.3%, coming on top of existing duties of 10%, were supported by 10 member states including France, Italy and Poland, several European diplomats told the AFP news agency.

Only five nations including Germany and Hungary, which has significant investment promises from China, voted against, while 12 abstained including Spain and Sweden.

BMW and Volkswagen criticised the EU decision. BMW said it was a “fatal signal” for the European car industry, while VW said it was the “wrong approach”.

Germany’s auto industry association, the VDA, also waded in, saying the country’s vote against tariffs was the “right signal” for the industry. The carmakers’ opposition led to some criticism that instead of falling behind EU policy, they were siding with China, which condemned the vote as “protectionist”.

“We strongly encourage the EU to … delay the implementation of these tariffs, and prioritise resolving disputes and trade tensions through consultations and dialogue,” the China Chamber of Commerce to the EU said in a statement.

Although the tariffs did not win support from a majority of states, the opposition was not enough to block them – which would have required the objection at least 15 nations representing 65% of the bloc’s population.

That leaves the choice on moving ahead in the hands of the commission, which “can be expected to decide in line with its proposal,” an EU diplomat said. The extra duties also apply, at various rates, to vehicles made in China by foreign groups such as Tesla, which faces a tariff of 7.8%.

Brussels says the measures aim to protect European carmakers in a critical industry that provides jobs to about 14 million people across the EU but does not benefit from hefty state subsidies like in China.

Canada and the US have in recent months imposed much higher tariffs of 100% on Chinese electric car imports.

The EU duties have pitted France and Germany against each other, with Paris arguing they are necessary to level the playing field for EU carmakers against Chinese counterparts. The levies due to come into force from the start of November and hold for at least five years, range from 7.8% extra duties on Tesla cars manufactured in China to 35.3% for cars made by the conglomerate SAIC including the British brand MG.

In an indication of fears spreading in Europe over the move, the Spanish prime minister, Pedro Sánchez, reversed course and asked Brussels last month to “reconsider”, despite Madrid’s initial support. Spain is among several European countries where China has invested significant sums in auto manufacturing.

The prospect of a trade war with China comes amid fears that UK manufacturers of EVs are struggling to meet sales targets.

The UK bosses of BMW, Ford and the Land Rover maker JLR were among those who wrote to the British Treasury on Friday ramping up pressure for government subsidies for EV sales amid a race to comply with the UK’s zero-emission vehicle (ZEV) mandate. The initiative is aimed at managing the phase-out of new petrol and diesel car sales, and the switch to EVs, over the next six years.

The latest data in the UK shows diesel sales continued to grow at a much higher rate than EVs.

The figures show registrations of new diesel cars for private buyers in September grew by about 17.2% compared with the same month in 2023. That compares with a rise of approximately 3.7% for pure battery electrics.

Why China’s EV start-ups can now breathe a little easier

https://www.scmp.com/opinion/china-opinion/article/3281018/why-chinas-ev-start-ups-can-now-breathe-little-easier?utm_source=rss_feed

Beijing’s bold stimulus measures may have come just in time to save the Chinese electric vehicle (EV) start-ups that have been running on a knife-edge.

The higher tariffs imposed by the United States and European Union are just bumps in the road for market leaders like BYD and Geely, which have solid financials and are already making inroads in overseas markets. But for innovative start-ups with dreams of becoming China’s answer to Tesla, this is a make-or-break moment.

Their biggest problem is running out of cash. Competing in China’s cutthroat auto market is expensive. Electric carmakers have to fight for a share of a crowded marketplace, and fickle consumer preferences keep them on their toes. High research and development costs, aggressive spending on sales and marketing, and intense price competition have been major obstacles to sustainable profits.

A fortuitous combination of circumstances came together to allow China to dramatically scale up production of EVs over the past decade. Strong government support, rapid technological innovation and entrepreneurial drive all played a role in creating the industry’s sophisticated ecosystem and advanced manufacturing capacity.

But the ready availability of market-based financing was a decisive factor driving China’s EV boom. Since the 2010s, Beijing has embarked on a sustained effort to transition away from internal combustion engine vehicles. Consumers were enticed by incentives that subsidised purchases of electric cars and made it easier to register them.

To investors, China’s EV sector looked like a sure bet. Companies throughout the supply chain were able to tap deep pools of funding from capital markets, sovereign wealth funds and venture capital firms, both in China and from overseas. Start-ups in the sector raised billions from investors eager to finance potential unicorns in innovative, environmentally friendly industries.

Taking inspiration from Tesla, Google and other Silicon Valley pioneers, these start-ups relied on rising valuations to attract new funding, in some cases despite years of losses. Companies such as Nio, a high-end, pure-play EV maker, adopted weighted voting rights structures that ensure founders maintain control even when their shareholdings are diluted. This helped shield them from short-term market pressure while they focused on growth.

Without having to worry about quarterly results, they were free to spend prodigiously in the hope of emerging as a market leader. And spend they did, burning through huge piles of cash over the past decade.

Investors were happy to keep rolling the dice. Start-ups saw their valuations go through the roof – Nio’s almost touched US$100 billion in early 2021. Raising funds was fairly easy, and early investors exited with big smiles.

Funding is now much harder to come by, however. Private investment in start-ups in China has dropped significantly over the past three years. Slower economic growth and languid capital markets made Chinese companies less attractive to investors, and poor financial performance has made fundraising more difficult.

Nio has recorded billions of dollars in cumulative net losses since 2014, and its market capitalisation has now dropped to less than US$10 billion. Li Auto, another pure-play EV start-up, recorded steady losses for a number of years before grinding out a profit for 2023. Since then, the company’s margins have got slimmer.

Looking at the market as a whole, China’s EV start-ups should be feeling confident. Auto sales had slowed by 2020, but have now passed pre-pandemic levels. More than half the cars sold in China are now electric or plug-in hybrid models. Monthly sales of battery powered and plug-in hybrid vehicles passed 1 million for the first time in August.

But there are many reasons for pessimism. Companies increasingly rely on price cuts and new features to attract consumers. Market leaders are emerging, with efficiencies of scale that will make it even harder for newcomers to break out. And without access to deep pools of funding, it remains to be seen whether China’s EV ecosystem can maintain its vibrancy and capacity for innovation.

Until last week, one possible endgame was that, perhaps with a bit of bureaucratic nudging, the market would sort itself out. The weakest companies would fold. Loss-making start-ups that managed to stake a respectable claim to a share of the market would be acquired by traditional carmakers. Volkswagen and Stellantis have already announced tie-ups with smaller EV companies.

Another scenario is now just as likely. If the new stimulus measures rolled out by Beijing last week reignite the animal spirits behind last decade’s rush to invest in Chinese EVs, investors will be tempted to double down on their big bets on loss-making start-ups. The money-go-round will be back – just in time to keep the party going for China’s Tesla wannabes.

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Outrage as China tourist strikes Winnie the Pooh actor at Shanghai Disneyland, causing fall

https://www.scmp.com/news/people-culture/trending-china/article/3280493/outrage-china-tourist-strikes-winnie-pooh-actor-shanghai-disneyland-causing-fall?utm_source=rss_feed

A tourist in China assaulted an actor portraying Winnie the Pooh at Shanghai Disneyland, leading to a fall and sparking widespread outrage on the mainland internet.

A middle-aged man was captured on video knocking the Disney character to the ground during a viral moment on social media on September 22.

As the Winnie the Pooh actor paraded around Disneyland, the man rushed out and slapped the actor on the head, causing the performer to immediately collapse, clutching their head and unable to rise.

Disneyland staff quickly intervened, stopping the man and assisting the actor in regaining their composure and leaving the area.

A female visitor, surnamed Wu, shared with the mainland media outlet The Paper that everyone present at the scene “heard a loud thud”.

She noted that many tourists scolded the man at the time, while staff addressed his behaviour.

Wu expressed her concern, stating: “It’s very heartbreaking. I hope Disneyland takes this incident seriously and that visitors learn to respect performers.”

On September 23, a female visitor using the username “Cute Tiger” posted a video indicating that she visited Disneyland to check on Winnie the Pooh and was informed that the actor was physically unharmed.

Shanghai Disneyland confirmed that the staff member sustained no serious injuries, and the tourist has been dealt with, although the specifics of the resolution will not be disclosed. They added that since characters must interact closely with guests, there are no barriers, and the park does not plan to change its policies.

Shanghai Disneyland’s official visitor guidelines explicitly state that assaulting performers is prohibited, but they do not specify particular penalties for such behaviour.

Fu Jian, a lawyer from Henan Zejin Law Firm, told Xiaoxiang Morning Post that if the actor was injured, the man could be liable for medical and emotional damages. Law enforcement may also impose warnings, fines, or administrative detention for public disorder.

Fu suggested that tourists who exhibit uncivil or unlawful behaviour should be banned from entering the park.

Additionally, the headgear may not be the cushioned protective helmet it appears to be. Online sources indicate that Disney’s headgear is constructed from hard materials, containing heavy metal frameworks to support head movements.

Huang Jia, a PhD student from Shanghai Jiao Tong University, pointed out in a popular science article that striking the headgear poses risks of concussion or eardrum perforation for the performers.

Online reactions have been sympathetic.

“These incidents of tourists attacking performers often go unresolved. Disneyland should protect its staff,” commented one user.

Another expressed empathy for the performers, acknowledging the physical toll they endure: “I feel so sorry for them. They endure high temperatures and heavy, hot costumes while maintaining enthusiasm to portray their characters.”

This is not the first time that Disneyland staff has been the victim of a physical attack.

In January 2023, a visitor struck the head of the character Lingna Belle at Shanghai Disneyland, leading to the performer experiencing vomiting and dizziness.

190 Chinese workers among 250 detained in Philippine scam farm raid

https://www.scmp.com/news/asia/southeast-asia/article/3281072/190-chinese-workers-among-250-detained-philippine-scam-farm-raid?utm_source=rss_feed

Philippine authorities have detained more than 250 people, most of them Chinese, in a raid on a suspected online scam farm in Manila, law enforcement officials said on Friday.

Police and other authorities raided the office building late Thursday to find staff with hundreds of phones, computers, and preregistered international and local SIM cards, the Presidential Anti-Organised Crime Commission said.

“These are red flags of love scamming that victimises foreign nationals,” the commission said in a statement, referring to schemes in which scammers pretend to have romantic feelings for their victims to earn their trust and eventually steal their money.

International concern has been growing over similar scam farms in Asia, often staffed by victims of trafficking who were tricked or coerced into promoting bogus cryptocurrency investments and other cons.

In July, Philippine President Ferdinand Marcos Jnr outlawed all forms of offshore gaming operators, including internet gaming licence holders, after the gambling industry was found to be linked to financial scams, kidnapping, prostitution, human trafficking, torture and murder.

Thousands of foreign workers at the outlawed firms were given two months to leave the Philippines.

In the Manila raid on Thursday, 190 Chinese, two Taiwanese and 62 Filipinos were detained at the offices of a company called 3D Analyzer Information Technologies Inc.

The company used to have an internet gaming licence but subsequently told regulators it had “ceased operations”, Gilberto Cruz, the executive director of the anti-crime commission, said.

“We’re looking for their passports or working visas, but they couldn’t show us anything,” Cruz added.

The commission will liaise with the Beijing and Taipei missions to help identify and arrange the of the foreigners, the official said.

Meanwhile, Filipinos found to be involved in scamming activities will be charged in court, he added.

Cruz said the commission would also apply to the courts for warrants to search computers found inside the office.

China, Vietnam drag down Asean+3 economic growth forecast

https://www.scmp.com/economy/global-economy/article/3281097/china-vietnam-drag-down-asean3-economic-growth-forecast?utm_source=rss_feed

This year’s growth forecast for the Asean plus three economies – China and Hong Kong, Japan and South Korea – has weakened from 4.4 per cent to 4.2 per cent, “primarily due to adjustments for China and Vietnam”, according to the Asean+3 Macroeconomic Research Office (Amro).

The Singapore-based macroeconomics forecasting organisation revised its 2024 growth expectations for China from 5.3 per cent to 5 per cent and for Vietnam from 6.3 per cent to 6.2 per cent “Asean+3 Regional Economic Outlook (AREO)” report released on Thursday.

And while the Association of Southeast Asian Nations (Asean) is expected to expand by 4.7 per cent in 2024, the plus-three economies are projected to grow by only 4.1 per cent overall, the report said.

“Growth for the region will be driven by continued recovery in external trade, resilient domestic demand, and a boost in tourism due to relaxed visa policies in some economies,” the report said.

But while China’s growth in the first half of the year puts it on track to achieve its annual gross domestic product growth target of “around 5 per cent”, the report also noted that slower growth in the second quarter had contributed to the lower forecasts.

“Key factors include weaker than-expected US employment data, slower growth in China in the second quarter, August’s global financial markets turbulence, and the shifting dynamics in the upcoming US presidential election,” the report added.

The Asian Development Bank published its latest forecasts for the region last week, toning down expectations for Southeast Asia from 4.6 per cent to 4.5 per cent growth in 2024.

However, its expectations for China’s growth remained unchanged at 4.8 per cent from April’s outlook.

Last week, S&P Global also reduced its China’s GDP growth outlook from 4.8 per cent to 4.6 per cent.

It also lowered its forecast for the Asia-Pacific region to 4.4 per cent for 2024 and 2025.

China last week introduced a stimulus package to boost its economy that is struggling with weak domestic demand and distress in the property sector.

The policies included cutting the benchmark policy rate and the reserve requirement ratio for banks, reducing the outstanding mortgage rate for homebuyers and injecting liquidity into equity markets.

China is expected to publish its economic data for September and the third quarter later this month.

It reported better-than-expected GDP growth of 5.3 per cent growth in the first three months of the year, although China’s expansion slipped to 4.7 per cent in the second quarter.

Last year, China reported 5.2 per cent GDP growth, which was in line with forecasts.

EU votes to impose tariffs on Chinese-made EVs in blockbuster trade spat

https://www.scmp.com/news/china/diplomacy/article/3281102/eu-votes-impose-tariffs-chinese-made-evs-blockbuster-trade-spat?utm_source=rss_feed

European Union members voted on Friday to impose punitive tariffs on Chinese-made electric vehicles in a hotly anticipated move that is bound to draw a reaction from Beijing.

Tariffs will be imposed by October 31 after a confidential vote of the bloc’s 27 member states. This came after an anti-subsidy investigation that found Chinese-made EVs were distorting the European market.

It marks a victory for European Commission chief Ursula von der Leyen who, backed by France, had pushed for a crackdown on what she has described as a “flood” of cut-price, subsidised EVs from China into the EU market.

It will be a bitter pill to swallow for Beijing. It had – along with Germany – lobbied fiercely against the tariffs, which it has challenged at the World Trade Organization. China has also launched a series of retaliatory trade investigations.

The duties range from 7.8 per cent for Tesla to a top rate of 35.5 per cent for state-owned SAIC Motor and other companies deemed to have not cooperated with the EU’s anti-subsidy probe.

BYD’s electric vehicles will carry an extra duty of 17 per cent, compared to 18.8 per cent for Geely. Each of these comes on top of a base rate of 10 per cent for all EVs imported into the EU from China.

The European Commission said the countervailing duties were required to equalise the impact of state subsidies in China’s EV sector. It argued that the Chinese government handouts allowed the cars to be sold cheaper than local models in the European market.

The vote turns the page on arguably the biggest trade dispute in the history of EU-China relations – but it is by no means finished, and may ultimately spark a long-predicted trade war.

Talks on a negotiated resolution will continue, despite extensive negotiations not yielding a settlement to date. Chinese companies have offered to place a minimum price on their imports but those have been rejected by the EU, which believes such an offer must mirror the impact of the duties.

More to follow ...

Indonesia’s enforcement ‘weakness’ exposed in Chinese man’s trial on illegal mining

https://www.scmp.com/week-asia/politics/article/3281105/indonesias-enforcement-weakness-exposed-chinese-mans-trial-illegal-mining?utm_source=rss_feed

The trial of a Chinese national accused of illegally mining more than US$65 million worth of gold in Indonesia has cast a harsh light on the nation’s “weakness” in tackling illicit mining operations and the alleged complicity of authorities, analysts say.

The Chinese man, identified by his initials YH, is on trial in West Kalimantan’s Ketapang regency for illegally extracting 774.27kg of gold and 937.7kg of silver, causing state losses estimated at 1.02 trillion rupiah (US$65.9 million).

The trial, which started on August 28 but was disclosed by the ministry of energy and mineral resources on September 29, also revealed that YH employed more than 80 Chinese workers and a number of locals who were tasked with non-mining works such as water pumping, housekeeping and catering.

The workers used heavy machinery such as picks, dump trucks and electric lower loaders, as well as mercury, to extract gold from the mud and other metals. The trial revealed “a quite high” mercury level of 41.35 micrograms per kilogram in the gold sample, the ministry said.

In May, Sunindyo Suryo Herdadi, director of engineering and environment at the ministry’s directorate general of minerals and coal, told reporters the defendant had taken advantage of mining tunnels in licensed mining areas that were not maintained by the licensed miners.

“[They] were blasting or dismantling the tunnel using explosives, then they processed and refined the gold ore. The results of the work were taken out of the hole in the form of ore or gold bullion. They already sold them,” Sunindyo said.

YH’s illegal mining pit reached 1,648 metres long, from which he excavated more than 2,687.4 cubic metres of gold ore.

On September 30, prosecutors demanded judges hand a sentence of five years in prison and a fine of 50 billion rupiah to YH for violating a 2020 law on minerals and coal mining. Prosecutors have said they are open to charging him with violating other laws.

The case has intensified concerns among mining experts about Indonesia’s inadequate law enforcement, which they say fosters illegal operations backed by authorities, resulting in significant state losses and endangering local communities.

“This shows the weakness of supervision in our mining sector, especially in the context of unlicensed mining. In our [research], in the past decade, illegal mining has become a kind of problem that is intentionally not resolved, as officials never sought a way out,” said Muhammad Jamil, head of legal and policy division at NGO Mining Advocacy Network, or Jatam.

Fahmy Radhi, an economist specialising in the energy industry at the Gadjah Mada University in Yogyakarta, said YH’s case showed that “even foreigners carry out illegal mining [in Indonesia], and that is detrimental to the country because they do not pay royalties and taxes. They may feel safe as long as they are not caught”.

In 2021, the ministry of energy and mineral resources revealed that there were 2,741 illegal mines across Indonesia, manned by 3.7 million people. Among these, 133 were located inside legal mining areas, much like YH’s operation.

Muhammad of Jatam said illegal miners in Indonesia typically befriended authorities to gain protection and evade prosecution.

“One of the high-ranking police officers told us that the pattern of illegal mining is usually ‘when the mining pit is small, they avoid the authorities. When it gets bigger, they befriend the authorities’. If it goes smoothly, they continue [the operation], if not, they are executed. That’s how bad our law enforcement system is when dealing with illegal mining,” he said.

He also alleged that YH was protected by officials and law enforcement, as it was not easy to buy mercury and cyanide because both substances were banned in Indonesia. Mercury and cyanide are used to separate gold from mineral ores.

“Chemical companies told us that it’s hard to procure them, so there must be big names who supply these chemicals,” Muhammad said.

Fahmy said authority-backed illegal mines could be found in all commodities, not just gold.

“There is a kind of alliance between companies and the authorities. The authorities can make rules that benefit illegal miners, or just neglect them,” he said.

In 2022, a police officer in North Kalimantan province was jailed for three years for being involved in an illegal gold mine. In 2021, the National Police’s Division of Profession and Security found high-ranking police officers in the Criminal Investigation Body in Jakarta receiving bribes of three billion rupiah every month from Ismail Bolong, a former police officer in East Kalimantan who operated an illegal coal mine.

Observers said lack of dedicated law enforcement within the ministry of energy and mineral resources hindered the prosecution of unlicensed miners. Authorities had promised in December to set up a task force to crack down on illegal mining, but it has so far not materialised.

“What they have are inspectors and internal supervisors for licensed mines, and the ratio is 1:100, which means that one person supervises 100 mines. How can there be proper supervision?” Muhammad said.

Aside from incurring state losses, weak enforcement also hurts local residents who work in the unsafe pits or live near them.

Last week, 15 miners were killed when their illegal gold mining pit collapsed in West Sumatra amid a massive landslide. On July 8, an unlicensed gold mining pit in Gorontalo collapsed, killing 27 miners, while 15 others were still missing when the search and rescue effort ended five days later.

In May, two siblings were found dead in a former open-pit mine in East Kalimantan, increasing the number of children killed while playing in abandoned open-pit mines to 47 from 2011 until May this year, according to Jatam.

Stars’ National Day messages for mainland China spark cross-strait controversy

https://www.scmp.com/news/china/politics/article/3281075/stars-national-day-messages-mainland-china-spark-cross-strait-controversy?utm_source=rss_feed

Congratulatory National Day messages from two Taiwanese stars famous for their past criticisms of Beijing’s policies have caused controversy on both sides of the Taiwan Strait.

Wu Kang-ren – who won best actor prize at last year’s Golden Horse film awards for his role in – marked the 75th anniversary of the People’s Republic of China on Tuesday with a celebratory post on mainland social media platform Weibo.

Wu, whose film and television work has been popular in mainland China in recent years, signed with a mainland-based management company soon after the acclaimed Malaysian film was released there last month.

Wu reposted an article by Communist Party mouthpiece People’s Daily about the anniversary.

Later on Tuesday, singer Chiao Anpu – formerly known as Deserts Chang – posted a similar handwritten congratulatory message on Weibo through her management company.

Wu and Chiao were among a long list of Taiwanese artists who paid homage to the October 1 anniversary but unlike the others they are known for previously supporting anti-Beijing social movements in Taiwan and Hong Kong.

While Chiao has continued to voice her opinion on local Taiwanese issues, the two artists have largely refrained from making critical observations about Beijing and its policies in recent years.

Reaction on the mainland was mixed, with some of Wu and Chiao’s fans disappointed that the remarks appeared to be at odds with their previously stated views.

Other mainland social media users said they did not believe the two had changed their position and suggested they were potential supporters of “Taiwan independence” – a red line for Beijing.

Meanwhile in Taiwan, some social media users reacted to the National Day posts by accusing Wu and Chiao of “abandoning their principles for the sake of making money on the mainland”.

The issue of Taiwanese artists paying homage to Beijing’s official celebration has long been a source of controversy on both sides of the Taiwan Strait. This year’s statements come at a time of significant deterioration in cross-strait relations.

Taiwanese leader William Lai Ching-te from the independence-leaning Democratic Progressive Party is regarded by Beijing as a dangerous separatist. Since he took office in May, the People’s Liberation Army has intensified its military activities around the island.

The October 1 National Day is not celebrated in Taiwan, which Beijing regards as part of its territory to be brought under mainland control eventually, by force if necessary.

Most countries, including the United States, do not recognise Taiwan as an independent state but Washington is opposed to any move to take the island by force and is committed to providing arms for its defence.

In a general comment on the matter on Tuesday, Taipei’s Mainland Affairs Council said it hoped artists sending congratulations on October 1 would “consider the sensibilities of Taiwanese society and cherish Taiwan’s hard-won democratic and free way of life”.

Beijing’s Taiwan Affairs Office has not commented on this year’s messages of congratulation but in the past has hailed similar celebrations by Taiwanese artists as a “genuine recognition of their identity”.

China was officially known as the Republic of China (ROC) and ruled by the Kuomintang (KMT) from 1911 until 1949. After losing a civil war to the communists, the KMT fled to Taiwan, retaining the ROC as the island’s official name, while the Communist Party established the People’s Republic.

Chiao was boycotted on the mainland after she displayed the ROC flag during a 2013 concert in Britain and described it as her “national flag”. A performance in Beijing later that year was cancelled and her mainland activities were highly restricted for years.

In March 2014, Wu and Chiao gave their public support to the Sunflower Movement – one of the largest protests in Taiwan, which opposed a free-trade agreement between the island and mainland China.

Chiao, who restarted her performances on the mainland two years ago, was also a supporter of the Occupy Central anti-government protests that took place in Hong Kong in 2014.

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In China’s quest for ‘patient capital’, insurance funds may fit the bill

https://www.scmp.com/economy/china-economy/article/3281127/chinas-quest-patient-capital-insurance-funds-may-fit-bill?utm_source=rss_feed

As China seeks to bolster its technological advancements through “patient capital” – funds which focus on long-term investment and hold greater tolerance for risk – insurance firms will play an essential role, a high-profile editorial published on Friday asserted.

The piece, which ran in the Economic Daily newspaper, urged insurance companies to optimise their investment strategies and evaluation mechanisms to better support long-term investments in scientific innovation.

While insurance funds – inherently stable institutions with a tendency towards long-term thinking – have many advantages in taking on this role, challenges persist.

“The current incentive mechanism and assessment system are not conducive to long-term investment,” said the periodical, noting some insurance companies focus on short-term returns that are vulnerable to volatility in the market. The Economic Daily is affiliated with the State Council, China’s cabinet.

The editorial also expressed concern listed insurers could be deterred from long-term high-risk investments due to their responsibilities for quarterly financial disclosures.

As such, the report called for insurance funds to refine their accounting practices and extend their cycles for performance assessment to three years or more.

This aligns with the Ministry of Finance’s move last October to adjust performance evaluations of state-owned commercial insurance companies, from an annual assessment to a method that includes a three-year analysis alongside the current year.

Insurance funds can also lengthen their investment periods and diversify risks through equity and mezzanine investments when investing in scientific and strategic emerging industries, the newspaper said, adding this would help enhance overall returns while mitigating the risk of individual project failure.

Alternative investment channels such as private equity funds, real estate investment trusts and merger and acquisition funds can provide insurance companies with a more flexible and diversified portfolio, the editorial said.

The Economic Daily piece follows a declaration from the State Council about the necessity of patient capital in the growth of science and technology companies during an executive meeting last month.

A week before the meeting, the council issued a 10-point document laying out regulations for the insurance industry in response to emerging issues related to governance, capital utilisation and returns in the sector.

South African avocados head to China as demand for the superfood soars

https://www.scmp.com/news/china/diplomacy/article/3281077/south-african-avocados-head-china-demand-superfood-soars?utm_source=rss_feed

South Africa’s first shipment of avocados is on its way to China, and Zimbabwe will soon become another supplier as Beijing turns to Africa to meet growing demand for the superfood.

Chinese ambassador to South Africa Wu Peng said the first shipment of 21,210kg (46,760lbs) of fresh South African avocados left Durban on September 14 and was set to arrive in Shanghai around Saturday.

“This marks the first shipment to China following the phytosanitary protocol signed last August, and is bound to boost bilateral trade,” Wu said earlier this week on X, formerly Twitter.

Wu was referring to an agreement reached on the sidelines of the 2023 Brics summit in Johannesburg stipulating the plant health requirements that South African avocado producers must meet to export to China.

In August, Chinese plant protection authorities gave final approval for South African avocado exports to China after the African nation met the strict requirements needed to reach Chinese consumers. This follows a visit by Chinese inspectors to South Africa in July for verification.

Resource-rich South Africa, which remains one of China’s most consequential trading partners on the continent, has become the third African avocado producer to gain access to the vast Chinese market, following Kenya and Tanzania.

Derek Donkin, CEO of the South African Subtropical Growers’ Association (Subtrop), said China was an important new market because of its potential to become a major consumer of the fruit.

He said it was difficult to project how many avocados South Africa would be able to export to China, “but we expect volumes to grow annually due to the rapid growth in the Chinese market”.

But one of the obstacles to rapid growth was a 25 per cent import tariff on South African avocados, which made it difficult to compete with tariff-free Peruvian avocados, Donkin said.

Peru is the top supplier of the fruit to China. Last year, China imported US$151 million worth of avocados, with US$108 million coming from Peru, US$27 million from Chile and US$7.85 million from Kenya, according to the World Bank’s World Integrated Trade Solution (WITS) data.

Donkin said a tariff cut would allow South Africa to maximise the trade opportunity presented by the protocol signed in 2023 and could help fix the trade imbalance between the two countries.

Lauren Johnston, a China-Africa specialist and associate professor at the University of Sydney’s China Studies Centre, said China was turning to Africa for the fruit because it is water-intensive to grow, making it logical for the Asian country to import avocados rather than to grow them.

Johnston added that avocados also had fewer phytosanitary hurdles to clear compared to other unprocessed food products.

“Avocado is a ‘superfood’ that many people want to add to their diet, including today’s middle-class Chinese,” Johnston said.

A health-conscious middle class is driving China’s growing appetite for the fruit. A decade ago, China’s avocado imports were negligible. But by 2018, they had grown to 40,000 tonnes and reached 66,000 tonnes in 2023.

The fruit can also help make good on Chinese President Xi Jinping’s promised “green lanes” aimed at increasing agricultural imports from Africa, part of a plan to support the continent’s agricultural modernisation.

“Since Kenya and South Africa are already exporting avocados to Europe … China may simply be targeting ‘low-hanging fruits’ – those that already have such permissions in extra-African markets because these are likely to get clearance for China more quickly,” Johnston said.

Another advantage was that South Africa’s growing seasons are opposite those of the northern hemisphere, meaning its seasonal produce exports mainly competed with South American and Oceanian exporters, Johnston added.

Data from the SA Avocado Growers’ Association showed that South Africa’s commercial avocado orchards covered around 19,500 hectares (48,200 acres) as of 2023. Some 45 per cent of the avocados grown are exported, mostly to Europe and Britain, while the rest are consumed domestically, according to the association.

South African avocados have also gained access to the Indian and Japanese markets in recent months.

South Africa is China’s top trading partner on the continent. While most of its exports to China are minerals, it is also a major exporter of citrus fruits, grapes, apples and pears to the country.

Agriculture has become the new focus of China’s engagement with Africa. Last month, on the sidelines of the Forum on China–Africa Cooperation (FOCAC) summit in Beijing, Zimbabwe became the latest country to sign a phytosanitary protocol to export avocados to China.

This year, Zimbabwe is expected produce 6,000 tonnes of avocados, and there are plans to increase the cultivation area from the current 1,500 hectares to 4,000 hectares in six years.

Harare is also eyeing Chinese market access for blueberries, pecans and macadamia nuts.

But it could take a while before Zimbabwean avocados hit Chinese stores, thanks to Beijing’s strict health standards. It took more than two years for Kenya’s avocado farmers to comply with the Chinese requirements.

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Meituan co-founder cashes out US$44.3 million amid Chinese stock rally

https://www.scmp.com/news/article/3281032/meituan-co-founder-cashes-out-us443-million-amid-chinese-stock-rally?utm_source=rss_feed

A co-founder of Chinese food delivery giant Meituan sold 2 million of his Hong Kong-listed shares in the company on Monday, cashing out about HK$344 million (US$44.3 million) amid a recent rally in Chinese stocks.

Mu Rongjun, an executive director and senior vice-president at the Beijing-based on-demand delivery firm, sold the shares at a price of HK$171.8, according to a disclosure filed to the Hong Kong stock exchange on Thursday. His Meituan stake now stands at 1.02 per cent, down from the 1.06 per cent previously. Mu is worth US$3.4 billion, according to Forbes.

Meituan shares rose 3.3 per cent to HK$211.8 in Hong Kong on Friday morning. The stock has rallied 240 per cent since hitting a low in early February.

Mu cut his holdings three months after Meituan announced a plan to buy back shares valued up to US$2 billion. The company said the buy-back was not guaranteed in terms of timing, quantity or price.

Meituan’s second-quarter revenue surged 21 per cent year on year, reaching 82 billion yuan (US$11.6 billion), bolstered by steady growth in its core local commerce operations focused on food and grocery delivery. Profit jumped 142 per cent to 11 billion yuan for the quarter.

On Thursday, the company announced the issuance of US$2.5 billion in senior notes to professional investors. This includes US$1.2 billion in notes with a 4.5 per cent coupon due in 2028 and US$1.3 billion in notes with a 4.625 per cent coupon due in 2029.

Meituan is seen as one of the Chinese tech stocks to benefit the most from a rebound in domestic consumer spending.

A new exchange-traded fund nicknamed “China Dragon”, which tracks major Chinese tech stocks, landed on the US stock market on Thursday. The fund’s components include Meituan, along with other Chinese tech giants such as Tencent Holdings, PDD Holdings and Alibaba Group Holding, owner of the South China Morning Post.

Separately, Alibaba said on Wednesday that it bought back 414 million ordinary shares in the quarter ending September 30 for US$4.1 billion. It had US$22 billion remaining in its buy-back programme as of September 30.

Foreign investors ‘seek shelter’ in undervalued Chinese assets, but scepticism remains

https://www.scmp.com/economy/china-economy/article/3281033/foreign-investors-seek-shelter-undervalued-chinese-assets-scepticism-remains?utm_source=rss_feed

Chinese assets are witnessing fund inflows from foreign investors, driven by Beijing’s recent large-scale stimulus measures and efforts to mitigate potential risks from the pace of interest rate cuts by the US Federal Reserve and the escalating conflicts in the Middle East, analysts said.

With Chinese markets closed due to the ongoing “golden week” National Day holiday, a surge in Hong Kong stocks had been pushed by the influx of foreign capital, especially from passive index-based foreign institutions that have played an important role in the market liquidity, Huatai Securities said on Thursday.

And analysts expect the inflows to persist as Beijing continues to implement easing measures that would help lift expectations on potential returns on Chinese assets, which had been drastically undervalued.

Huatai Securities cited fund flow and asset allocation data provider EPFR that a net inflow of US$1.8 billion went into Chinese equity assets from passive index-based foreign investors between September 19 and 25.

The figure, while only covering the two trading days following the raft of rate cuts and policies unveiled last week to boost the world’s second-largest economy, marked a notable increase compared to previous levels.

Gary Ng, a senior economist at French investment bank Natixis, said the inflow of foreign capital had been partly driven by the US Federal Reserve’s rate cut, which boosted risk appetite and benefited all assets in emerging markets, including China.

“With a relatively internally looking market nature, China is less correlated to the geopolitical risks in the Middle East than other markets, making it a possible shelter if a war breaks out,” Ng said.

Another cyclical bonus, according to Ng, was the recent recovery in sentiment, which can tell a better investment story than before.

Yan Liang, an economist at Willamette University in the US state of Oregon, said foreign investors are attracted by the recent rally of the equity market.

“The Chinese equity market is much undervalued, and the early data for golden week is quite upbeat and could fuel positive sentiment and confidence, plus, the fiscal stimulus is yet to come and could further stimulate the economy and address some of the structural issues,” Liang said.

“I think after the knee-jerk reaction to the stimulus, investors will still enter the China market, perhaps in a more cautious and calculated way,” she said, adding that market sentiment and liquidity seemed to point in a positive direction.

Conflicts in the Middle East and the escalation of the war in Ukraine have heightened risks and called for diversification for investors, she added.

On Thursday, US dock workers reached a tentative deal with port operators to end a three-day labour strike, which had stopped shipping on the East and Gulf coasts.

The East Coast strike could have impacted US exports of food and other farm products, including to China, pushing up the prices of consumer goods.

“The US’ political uncertainty with the [presidential] election, the stagnant or tepid economic performance in Europe and Japan, and the overvalued market in India would all push some investors to diversify into China,” Liang added.

On Friday, Hong Kong’s Hang Seng Index recovered from a dip on Thursday and rose by 1.75 per cent at midday, with a 3.54 per cent jump in the Tech Index. The market had enjoyed a week-long rally following Beijing’s policy bazooka last week.

Mainland Chinese markets are closed until Tuesday for the golden week holiday after a market frenzy that pushed turnover on the Shanghai and Shenzhen bourses to a combined record of about 2.6 trillion yuan (US$369 billion) on Monday.

Last week, China’s central bank announced a raft of economic stimulus measures, including cutting bank’s reserve requirement ratio and its policy interest rate, while also reducing the mortgage rate for existing housing and introducing policy tools funded with 800 billion yuan (US$113.5 billion) to support the stock markets.

“Any major equity-market rally is going to draw in more foreign investors, at least to some degree, the scale and speed of the upswing so far is hard to ignore,” said Christopher Beddor, deputy China research director with Gavekal Dragonomics in Hong Kong.

“There is still a lot of scepticism about the Chinese market among Western institutional investors, so it’s reasonable to think that many will opt to stay on the sidelines for now.”

Beijing’s stimulus package was considered “a big step to end the deflationary deleveraging and to stimulate creative productivity”, according to Ray Dalio, the billionaire investor.

“That happened at the same time as Chinese assets were (and still are) very cheap, so it was a combustible combination of influences that set the markets on fire,” he said on Tuesday.

If China’s asset pricing followed its return on equity trend, driven by anticipated policy improvements, the forward price-to-book ratio could increase from 1.36 to 1.57, according to Thursday’s note from Huatai Securities, which noted that mid-October presented a window for a more aggressive market strategy.

Additional reporting by Ralph Jennings

What time is it on the moon? China and the US are racing to decide

https://www.scmp.com/news/china/science/article/3280984/what-time-it-moon-china-and-us-are-racing-decide?utm_source=rss_feed

The world’s two biggest powers – China and the United States – appear to be locked in a race to decide what time it is on the moon, and the winner will leave its mark on the history of space exploration while setting a new standard for future lunar missions.

The US and its space partners are attempting to establish a special time zone for the moon. Meanwhile, rivals China and Russia remain outside the US-led initiative, leaving Beijing to pursue its own lunar timing and navigation system.

Prompted by a White House directive, Nasa is spearheading the creation of a new time standard, Coordinated Lunar Time (LTC), to support safe and sustainable exploration as more nations and private companies plan missions to the moon, the agency said on its website last month.

The proposed time system will be adopted by signatories of the US-led Artemis Accords and is intended to serve as “the international standard”, according to a memorandum from the White House Office of Science and Technology Policy issued in April.

“Knowledge of time in distant operating regimes is fundamental to the scientific discovery, economic development, and international collaboration that form the basis of US leadership in space,” the memo stated.

Namrata Goswami, a space policy researcher at Arizona State University, said the White House directive was based on the fact that lunar activities, including manned and unmanned missions, would increase, requiring a common time zone for better coordination between the Artemis signatory countries.

She noted that during the Cold War, lunar spacecraft used the time standards of the craft’s origin country, but activities on the moon were more limited then.

The number of Artemis Accords signatories has grown to 43, but they do not include two of the biggest space powers – China and Russia. Instead, Beijing and Moscow are leading a parallel effort known as the International Lunar Research Station, which aims to build a permanent base at the moon’s south pole by 2035.

China has its own plans to establish a timekeeping and navigation system for the moon. Goswami noted that China had announced plans to establish a time zone for the moon and develop coordinated lunar communication and internet capacity by 2028.

Researchers have proposed various road maps for developing a BeiDou-like satellite constellation for the moon, which would play a critical role in positioning, navigation, and timing in the space between Earth and the moon’s orbit.

In June, a team from the Beijing Institute of Spacecraft System Engineering proposed launching a network of 21 satellites around the moon to provide real-time, high-precision navigation to support China’s lunar ambitions.

The satellites, featuring a sustainable and cost-effective design, will be deployed in three phrases and four types of orbits, according to their paper published in the journal Chinese Space Science and Technology.

The moon currently lacks a unified time system, with each mission using its own timescale linked to Earth’s Coordinated Universal Time (UTC). While this method has worked for independent missions, it could become problematic when multiple spacecraft need to collaborate.

Clocks on Earth and the moon also tick at different speeds due to the different gravitational fields. According to Nasa, atomic clocks on the lunar surface are expected to tick 56 microseconds – or 56 millionths of a second – faster per day than clocks on Earth.

While the difference may seem small, precise timekeeping is crucial for synchronisation in space missions.

Additionally, clocks run at different rates on the lunar surface compared to in lunar orbit, and setting a lunar time must also take into account practicality for astronauts. All these factors make it challenging to answer the question: what time is it on the moon?

According to Nasa, LTC will be determined by a weighted average of atomic clocks placed on the moon, similar to how scientists calculate UTC on Earth.

“Nasa and its partners are currently researching which mathematical models will be best for establishing a lunar time,” the agency added.

Goswami noted that it was not yet known whether the lunar time zones for Artemis and the International Lunar Research Station partner countries would be identical.

Establishing time standards is not just a crucial step for practical coordination but has also historically been a symbol of political power and influence.

The adoption of Greenwich Mean Time as the global standard was a prime example. The 1884 decision for the prime meridian to run through the site of the Royal Observatory at Greenwich was not merely for convenience, but also a reflection of Britain’s dominance in navigation, trade, and science at the time.

China’s Liaoning aircraft carrier puts jets through paces after skirting Japanese atoll

https://www.scmp.com/news/china/military/article/3281005/chinas-liaoning-aircraft-carrier-puts-jets-through-paces-after-skirting-japanese-atoll?utm_source=rss_feed

China’s Liaoning aircraft carrier has been spotted in waters southeast of the Philippines, carrying out manoeuvres as the US and its regional partners prepare for joint military exercises.

The Joint Staff under the Japanese Ministry of Defence said on Wednesday that the Chinese carrier, escorted by four destroyers and one fast combat support ship, was reported earlier this week sailing southeast of the Philippine main island of Mindanao and heading towards the Celebes Sea.

The Joint Staff said the Liaoning began its deployment in late September, passing near Okinotorishima, Japan’s southernmost point, on September 20-21 and was last reported to be about 1,520km (945 miles) southwest of the atoll.

The transit near Okinotori is the Liaoning’s closest approach to Japan’s southwestern territories so far and prompted a diplomatic protest from Tokyo. Japan expressed concern that such movements posed a threat to regional security and stability.

The Joint Staff also said that between September 27 and October 1, Chinese fighter aircraft and helicopters conducted about 220 combined take-offs and landings from the vessels.

That was in addition to 410 aircraft sorties conducted from the ships from September 20-26, the Joint Staff said.

The People’s Liberation Army has increased use of shipborne fighter jets in its military pressure tactics around Taiwan in recent months, particularly to approach the island’s east side – the far side from the mainland.

According to a programme on state broadcaster CCTV, the PLA tested a new type of ship-borne fighter jet on the Liaoning last month.

The Liaoning’s manoeuvres come as a task force of US Marines prepares for joint exercises with Philippine personnel this month.

The US Marine Rotational Force-Southeast Asia will take part in the Sama Sama 2024 and Kamandag 8 drills from October 7 to 24, aiming to “maintain a forward presence in the region to counterbalance China’s growing influence by enhancing cooperation and interoperability between the US and its regional partners”.

Tensions are rising in the South China Sea between Beijing and Manila, with coastguard forces from both countries coming to blows in disputed waters in the past months.

‘Little emperors’ in China, Malaysia’s durian trademark: SCMP’s 7 highlights

https://www.scmp.com/news/world/article/3280913/little-emperors-china-malaysias-durian-trademark-scmps-7-highlights?utm_source=rss_feed

We have selected seven stories from this week’s news across Hong Kong, mainland China, the wider Asia region and beyond that resonated with our readers and shed light on topical issues. If you would like to see more of our reporting, please consider .

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

“It is estimated that by 2035, ‘Made in China’ will surpass the United States and become the global leader,” Lu Yongxiang, former vice-chairman of the National People’s Congress, said in an article.

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.

Singapore’s Foreign Minister Vivian Balakrishnan and Law Minister K. Shanmugam have sharply refuted assertions by Lee Hsien Yang the son of founding father Lee Kuan Yew, linking a defamation case to the legacy of his late father and the city state’s first prime minister.

Chinese scientists say they have developed a nuclear-powered battery with a photovoltaic cell that could generate electricity for hundreds of years, at an overall efficiency thousands of times higher than its closest rivals.

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

China’s durian consumers, the world’s biggest fans of the spiky pungent fruit, are expected to find not only consistently stable quality but also higher prices with Malaysia extending the intellectual property status of its popular Musang King variety – a move that comes as Chinese authorities have suspended some imports from Thailand.

Poor young women in Indonesian villages are becoming temporary wives for male tourists in exchange for a bride price leading to online condemnation of the practice. Once both parties agree, they hold a quick, informal wedding ceremony, after which the men are required to pay the women a bride price as compensation.

Shock video of China bride taped to phone pole sparks debate over vulgar wedding hazing

https://www.scmp.com/news/people-culture/trending-china/article/3280082/shock-video-china-bride-taped-phone-pole-sparks-debate-over-vulgar-wedding-hazing?utm_source=rss_feed

Harrowing images of a bride in China who was taped to a telephone pole by several friends as part of a game on her wedding day has sparked an online debate about vulgar marriage customs.

On September 23, a viral video from Shanxi province in northern China, showed several men binding a bride in traditional Chinese wedding attire to a phone pole with tape.

She cries as out for help and tries to escape, but no one intervenes.

A friend of the bridegroom, surnamed Yang, told Fengmian News that the men were the groom’s childhood friends.

Yang added that the “game” had been agreed upon by both the bride and groom beforehand.

“Making a bit of a scene at weddings is our local custom, all among good friends. There was no harm done,” he said.

Yang added that the groom was present during the binding and that they all looked out for the bride’s safety, urging people not to misunderstand the situation.

The incident has sparked outrage and condemnation on mainland social media.

One Douyin user said: “Building your joy on someone else’s suffering is truly disgusting.”

Another said: “If something happens to the bride, who will take responsibility?”

“These vulgar wedding customs are relics of a bygone era. There is no excuse for hurting others,” added a third.

On September 24, the local government issued a statement in which Yang and others involved in the case apologised for their actions.

The statement also said the government will strengthen its efforts to promote civilised wedding customs and encourage citizens to abandon the outdated practices.

In traditional Chinese weddings, hun nao, or “wedding hazing” is meant to create a festive atmosphere and ease the couple’s nerves.

Originating centuries ago, the custom involved family and friends using laughter to ward off evil spirits.

However, today, it has devolved into crude jokes and inappropriate games.

A wedding planner from Wuhan, who wished to remain anonymous, told the Post that at some weddings he has seen guests tying bananas or cucumbers to the groom for the bride to bite, or the man being stripped to pose with the bride.

Vulgar wedding hazing incidents are not uncommon in China.

In February last year, a bride from Jiangsu province in eastern China was kissed and slapped on the rear by male friends attending her wedding.

In December 2016, three men in Guizhou province, southwestern China, tied up a groom causing injuries that left him permanently disabled. The men were ordered to pay more than 100,000 yuan (US$14,000) in compensation.

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Chinese smart-glasses maker Even Realities puts displays first in alternative vision to Meta

https://www.scmp.com/tech/tech-trends/article/3280965/chinese-smart-glasses-maker-even-realities-puts-displays-first-alternative-vision-meta?utm_source=rss_feed

A week before Meta Platforms unveiled a new live translation feature for its latest Ray-Ban smart glasses, I was having some Sichuan theatre translated live in front of my eyes courtesy of a pair of smart glasses made in Shenzhen.

Unlike the Ray-Ban frames, the Even Realities G1 glasses use micro-LED projectors and a special layer embedded in the lenses to convey information rather than speakers. It is something I have long wanted in a pair of sleek glasses that I would feel comfortable wearing out in public. The hardware delivers on the promise, although software may not be ready for the world to adopt this sci-fi future just yet.

When Even Realities offered to send me its debut product to try out, I was most excited to see what kind of progress was being made on smart glasses with displays. I categorise these as “visual” smart glasses, as that is how they primarily give feedback, in contrast with “auditory” smart glasses like the speaker-equipped Ray-Ban Meta frames, or “immersive” smart glasses, like Meta’s newly unveiled Orion augmented reality glasses or the glasses from China’s Xreal.

The most important thing for a product like this is that they have to feel like regular glasses – i.e. something that people will want to wear every day – a fact not lost on Even Realities co-founder and CEO Will Wang.

“We know that if we were to build smart glasses, we need to actually start from the eyewear market, because that’s the market where everybody is already used to wearing glasses,” Wang told me at his company’s Shenzhen office in July. “If you want people to wear it all day, it needs to be first a really good pair of glasses.”

Even Realities is part of a new crop of Chinese companies that see an opportunity to make svelte glasses crammed with tech that consumers will actually want. Smart glasses are having a moment, fuelled in part by the added capabilities of generative artificial intelligence. As happened with smartphones, Chinese companies are quickly iterating to push the product category forward.

Even Realities sees a way to differentiate itself by selling a premium product to overseas markets. The G1 went on sale on August 22 in the US and Europe, where it has international headquarters in Berlin, and the company said sales have exceeded expectations. There are no plans yet to launch the product in China.

The company was founded in September 2023 by Wang, a former Apple engineer who worked on the Apple Watch, and a team of people who moved over with him from JMGO, a Chinese projector company based in Shenzhen.

Design and fashion have been central to the company’s approach to building smart glasses from the get-go, and it hired German eyewear designer Philipp Haffmans.

“A lot of companies … are trying to build a tech product that looks like glasses,” Wang said. “But we’re trying to actually build a pair of glasses that has tech.”

Some investors have already bought into Wang’s vision. The company said it has raised more than US$10 million, including funding from top venture capital firms in China, but Wang declined to say who.

As far as the glasses go, the focus on design appears to have paid off. They are comfortable to wear, weigh less than many alternatives, and are stylish enough to be passed off as a normal pair of glasses. The real question for shoppers is whether they want to buy into the single thick-rimmed aesthetic available.

Style is important, because the G1 glasses are not cheap – even by smart glasses standards. On top of the US$600 base price, prescription lenses are an extra US$150, and the clip-on sunglasses are another US$100.

By comparison, the Ray-Ban Meta smart glasses start at US$300. Speakers, of course, are cheaper than micro-LEDs projectors.

So does Even Realities’ tech justify the price of admission? The most appealing thing about the glasses is that they mostly do what is promised, which is stay out of the user’s way until needed.

The monochrome green display that makes wearers feel like they are in the Matrix is largely unobtrusive. A dashboard with the date, weather and calendar appears when the user looks up, although it is sometimes a bit too sensitive and triggers with minor reclining and upwards glances.

Some of the features work surprisingly well in specific contexts. At the Sichuan theatre, the translation handled the host’s standard Mandarin well, allowing me to follow the gist of what he was saying. It fell apart during dialogue, though. This feature is best used for one-on-one conversations.

Two of the other most practical features are navigation and teleprompter. Navigation offers turn-by-turn instructions and teleprompter uses voice recognition to scroll through text as the user reads it aloud.

Yet these features are also very limited. Navigation has to be used through the maps service in the Even Realities app and requires a specific destination, making it not so useful on hiking trails, when I most wanted to use it.

The teleprompter feature is clever, but I am rarely in a situation when I would need it. I am more likely to be moderating panel discussions in front of a live audience rather than presenting from a prepared script.

As other AI-powered hardware has illustrated, though, the chatbot is mostly a gimmick. In the G1, it had difficulty registering my questions much of the time, which is strange since the translation feature, which also partially relies on OpenAI’s GPT models, had no such issues. It is also easier to read the answers to prompts on a smartphone than on a floating display in a bright room or outdoors. This is an area where audio makes more sense.

Even Realities’ product is about as good as smart glasses get right now as an everyday wearable. But the smart glasses race is taking off as many people are also trying to be more mindful about their use of technology by limiting screen time.

That raises the question of whether consumers really want to remove another layer of friction between themselves and the internet. In some cases, that seems to be an obvious benefit: Chinese conversations with the in-laws just got a lot easier. For most of my day, though, the answer is increasingly no.

Companies need to think about how to address shifting consumer needs. Wang believes his company is on to something and buying into an inevitable future.

“Smart glasses eventually will need to have the display, because that’s the one point that’s going to separate smart glasses with any other gadgets out there,” Wang said. “We know that the trend is going to be there, but by the time we get there, you need to create a pair of smart glasses … that people want to wear all day on their face.”

China’s fiscal package needs to be sizeable to be effective, maintain momentum: economist

https://www.scmp.com/economy/policy/article/3280954/chinas-fiscal-package-needs-be-sizeable-be-effective-maintain-momentum-economist?utm_source=rss_feed

China should issue at least 10 trillion yuan (US$1.4 trillion) worth of long-term special treasury bonds to boost consumption and help local governments to pay off debt owed to the private sector, a leading Chinese economist said.

The suggestion from Mao Zhenhua, co-director of Renmin University’s Institute of Economic Research, came as analysts widely expect Beijing to come up with a fiscal stimulus package following a raft of interest rate cuts and monetary policy easing last week, which had sparked a rally in the Chinese stock market.

Mao said China should consider issuing additional long-term treasury bonds of a significant size – a move that would lift its official fiscal deficit ratio of 3 per cent of its gross domestic product this year.

“For example, we should be considering at least 10 trillion yuan,” said Mao, who is also the founder of the China Chengxin Credit Rating Group.

“I think it needs to be sizeable for it to be effective to lift the economy and maintain the positive environment following the monetary policy easing [by the central bank].”

Mao suggested that the proceeds from the long-term treasury bonds could be channelled to subsidising household spending in the form of consumption vouchers and to repay some of the money owed to the private sector to improve local governments’ credit records.

Tax reductions for businesses should also be considered, Mao added, while some of the proceeds from the long-term treasury bonds could be allocated to local governments to cover revenue lost due to tax cuts.

An austerity drive and declining revenues from land sales in China have triggered concerns that some cash-strapped local governments and state firms are not paying contractors and suppliers, many of which are small and medium-sized companies, despite calls from the central government to clear overdue payments to the private sector.

In 2024, the size of interest payments on local government debt, including local government bonds and interest-bearing debt by local government financial vehicles (LGFVs), would exceed 4 trillion yuan (US$586 billion), accounting for more than 20 per cent of local fiscal revenues, according to an estimate by Yuan Haixia, a senior researcher at China Chengxin International.

LGFVs are hybrid entities that are both public and corporate, and were created to skirt restrictions on local government borrowing, with much of the funds spent on infrastructure.

Mao said that economic benefits, such as employment created by infrastructure spending from local governments, have been increasingly marginal.

“I don’t think it’s necessary to use the proceeds from the new bonds to fund infrastructure projects to drive economic growth,” said Mao, who has advocated for the transfer of government income to households and the optimisation of local government debt structures, with the central government taking on some of the local debt.

“Currently, the stock market is performing well. But to benefit households and businesses, fiscal policy changes would need to be much more effective.”

While Chinese academics and policy advisers agree that Beijing needs to expand its fiscal policy to meet its “around 5 per cent” gross domestic product growth target for 2024, opinions are split on whether the additional funds from treasury bonds should be transferred to consumers or infrastructure projects.

At the Tsinghua PBCSF Chief Economists Forum on Saturday, former People’s Bank of China adviser Yu Yongding said infrastructure remained a viable option to steady economic growth, given the declining investment in property.

Lu Ting, chief China economist at investment bank Nomura, told the same forum that infrastructure spending should be targeted at improving efficiency, while some funding could go to the middle- and low-income groups.

Why do so many Chinese officials fall for fake promises of political charlatans?

https://www.scmp.com/news/china/politics/article/3280533/why-do-so-many-chinese-officials-fall-fake-promises-political-charlatans?utm_source=rss_feed

A man from a modest background and in possession of no remarkable skills managed to amass a staggering fortune over two decades, as well as the respect of top Communist Party officials in China’s southwestern province of Yunnan.

All Su Hongbo had to do was brag about his Beijing connections and package himself as someone who could make things happen. The charade ended in 2020, when he was revealed as a conman and later convicted on corruption charges.

To the party’s corruption fighters, Su was as a typical “political charlatan” – an impostor who fakes ties with high-level officials for gain – and was accused of “seriously polluting and damaging the political ecology”.

Since then, the term “political charlatan” has turned up in numerous transcripts of investigations into officials who, despite their knowledge of the internal workings of the party system, were fooled by businesspeople who took advantage of their ambitions.

The scale of the problem meant that when the party’s all-important third plenary session vowed in July to continue President Xi Jinping’s signature anti-corruption campaign, political charlatans were named as a target.

It echoed Xi’s message at the past two annual plenary meetings of the Central Commission of Discipline Inspection (CCDI), the party’s anti-corruption watchdog, when he called on cadres to “persistently purify the political environment”.

At this year’s meeting in January, Xi said there was a need “to crack down on various political charlatans and strictly prevent the principles of commercial exchange from infiltrating the party”.

Meanwhile, last year’s amendments to the party’s regulations also specified that befriending political charlatans or being exploited by them could lead to expulsion in the most severe cases.

But why are people inside China’s party state system fooled so frequently by outsiders bragging about their political influence, and how do political charlatans manage to persuade officials that their claims are genuine?

According to an enforcement and disciplinary official who spoke under condition of anonymity, some corrupt officials turn to the fraudsters in the hope they will help to cover up their behaviour.

“They naively believe these individuals can use their connections to intervene, plead, or cover up their case,” the official said, adding that these mindsets were exploited by the charlatans to carry out fraud.

“Also, because these officials know they are guilty of corruption, they are too afraid to report the charlatans, even after they realise they have been deceived.”

Some disgraced officials that have been accused of trying to advance their careers by courting political charlatans have been at the ministerial level, such as former justice minister Fu Zhenghua who was jailed for life in 2022 for corruption.

Despite being the second most powerful man in China’s police force, Fu was manipulated for 20 years by a political charlatan, according to a 2021 report by state broadcaster CCTV.

“Anyone with a normal thought process and logical reasoning” would not have believed that a man with only a technical school education could be an expert and high-level adviser to the leadership as he claimed, CCTV reported.

“However, Fu Zhenghua fell for it.”

According to the report, Fu received nothing from the relationship while the charlatan gained land development projects contracts and jobs for his relatives.

In the past two months, the CCDI has made a number of announcements about allegedly corrupt officials accused of associating with political charlatans.

They include Wang Yilin, former party secretary at China National Petroleum Corporation, and Wang Yong, who was a member of the party’s leadership group in the Tibet autonomous region.

Both were placed under investigation and accused in July of having “long associated with political fraudsters”.

With most officials drawn from society’s well-educated elites, the phenomenon seems “counterintuitive”, according to a Beijing-based political scientist, who asked not to be named because of the issue’s sensitivity.

But, he said, “it isn’t that surprising” that they could still be deceived, because the party’s centralised decision-making systems allowed little personal control over career progression.

“The party has a saying, that cadres cannot design their own career development. This means that the career path of a cadre, such as promotions or transfers, is not something they can control – it is determined by higher-ups.”

The idea that officials should have no say over their careers is not new. In 2018, Xi reinforced the message to personnel chiefs from around the country at the national organisational work conference.

“Personal effort isn’t about self-design or aiming for a certain position, but rather about enhancing political experience and practical skills to become someone loyal to the party and useful to the country,” Xi told them.

Deng Yuwen, former deputy editor of Study Times, the Central Party School’s official newspaper, said people turned to fraudsters because the system itself was designed to be accountable upwards rather than downwards.

“The legitimacy of officials’ powers does not come from recognition by the public, or their achievements. It comes from the higher-ups, from the recognition of these higher-level officials. So officials would be seeking connections with the higher-ups.”

A CCDI report published in May last year said the deceivers usually described themselves as people who could be trusted to intervene in governmental personnel arrangements.

The CCDI also found that the activities of the political charlatans reached their peak during leadership transitions and personnel changes.

According to the political scientist, as individuals ascend to higher levels, there are fewer people to confide in and the rules on how things work become less clear. Career progression is also unpredictable and becomes increasingly complex and uncertain.

“One has no control over his own career development or even personal safety, which he cannot grasp at all, and the lack of any information, [as well as] the absence of people around to discuss or verify content,” he said.

Higher-level political operations had become “increasingly mysterious”, he said. “As it is highly opaque and [with] no other channels to communicate or verify information, these fraudulent individuals have more room to manoeuvre.”

There is also the risk of falling out of favour and standing too close to the wrong camp before transitions of power, which may cost an official their personal safety and freedom, according to the political scientist.

The past two years have seen several dramatic incidents, including the dismissals of two senior ministers, Qin Gang and Li Shangfu, both the shortest serving officials in their respective positions.

Former foreign minister Qin was last seen in June 2023, before he was abruptly removed from his post and all other positions. Beijing has never officially explained his removal, saying only that he had resigned.

Li, who was defence minister, was also abruptly removed from his post last October without explanation, a year before the party finally announced he had been placed under investigation.

Claus Soong, an analyst at Berlin-based think tank the Mercator Institute for China Studies, said the opaque nature of the party system was inside out. “Within the system, everything is opaque, so the left hand doesn’t know what the right hand is doing.

“And people inside the system often lack the information and ability to discern fraudulent activities, which are typically disguised with prospects for career promotion to hook up comrades.”

A Beijing-based official, speaking on condition of anonymity, also said the information imbalance went both ways, with those in higher positions not always knowing the full picture needed to make informed decisions or gain clarity.

Selections and promotions were mostly decided by superiors but “they often cannot fully understand the abilities and performances of all their subordinates”, leading to an information asymmetry.

This provided an opportunity for fraudsters claiming to have strong connections with high-ranking leaders and the ability to influence their decisions, which “can be very tempting for officials who are eager to advance in their careers”, the official said.

Another official based in southern China, who also requested anonymity, said some high-ranking officials were particularly vulnerable. They had little contact with the grass roots, which meant they were easily tricked.

According to the southern official, there are people who specialise in targeting these individuals by pretending to have connections in Beijing and then asking for money to pay bribes.