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• Philippines’ Marcos Jnr issues strongest call yet against Beijing for South China Sea code
• Are prospects for China’s exporters picking up on eve of Canton Fair?
• Vietnam trip offers Chinese Premier Li Qiang a chance to ease tensions after ‘attack’ on fishermen
• China’s Li Qiang calls for ‘rational’ views in talks with EU chief Michel as trade row simmers
• Tesla’s robotaxi event draws mixed reaction in China where Elon Musk faces tough rivals
• Survey finds China’s SMEs still struggling, with liquidity tightening
• Chinese envoy praises Bangladesh student protesters while urging return to stability
• Blinken tells ASEAN the US is worried about China’s ‘dangerous’ actions in disputed sea
• IMF tells Pakistan to stop investment perks, potentially hitting China’s belt and road projects
• The Chinese couple behind a kitchen that helps cancer patients and families
• Apple opens its ‘most extensive’ lab outside US in China amid fierce rivalry with Huawei
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Philippines’ Marcos Jnr issues strongest call yet against Beijing for South China Sea code

https://www.scmp.com/week-asia/politics/article/3282070/philippines-marcos-jnr-issues-strongest-call-yet-against-beijing-south-china-sea-code?utm_source=rss_feed

Philippine President Ferdinand Marcos Jnr has issued his strongest call yet for Asean and China to expedite a long-delayed Code of Conduct to manage tensions in the South China Sea, denouncing Beijing’s actions and warning that economic cooperation alone will not ease security concerns in the region.

During his address at the 19th East Asia Summit in Vientiane, Laos, on Friday, Marcos Jnr detailed recent incidents of harassment involving Chinese vessels and Philippine ships in the contested waterway.

A news release from the Presidential Communications Office quoted the president as saying that in August, “Chinese vessels harassed the Philippine Coast Guard while on routine maritime patrol in Escoda Shoal which is within the exclusive economic zone (EEZ) of the Philippines.”

“More recently,” Marcos Jnr said, “PLA Navy missile ships intimidated Philippine civilian fishing vessels and aircraft, showing China’s continued disregard for international law and standards, particularly Unclos [the United Nations Convention on the Law of the Sea] and the 1972 Convention on the International Regulations for Preventing Collisions at Sea.”

“These kinds of behaviour cannot be ignored, and demand of us concerted and serious efforts to truly manage our disputes in the South China Sea,” he said.

He added that while “positive developments have occurred recently in my country, it is regrettable that it has not changed the overall situation in the South China Sea, tensions remain”, referring to the ongoing China-Philippines Bilateral Consultation Mechanism on the South China Sea that was able to reach an agreement on managing tensions around the disputed Second Thomas Shoal.

He urged members of the East Asia Summit – which includes the 10 Asean states and eight key partners such as China and the United States – to “all remain open so as to seriously manage differences and reduce tensions” in the contested waterway.

Marcos Jnr’s remarks on Friday were a stark departure from his earlier, milder pronouncements such as those he made during Wednesday’s plenary of the 44th Asean Summit, when he simply called on member states “to uphold a rules-based international order”.

At the Asean-US Summit, also on Friday, he expressed appreciation for “the reliable and active presence of the United States in the region as a force for peace, stability, and security in the Indo-Pacific”.

Beijing has repeatedly condemned the presence of American warships and planes operating in the Indo-Pacific as part of its freedom of navigation operations.

US Secretary of State Antony Blinken on Friday told the Asean bloc the United States “will continue to support freedom of navigation and freedom of overflight in the Indo-Pacific”.

“We remain concerned about China’s increasingly dangerous and unlawful action in the South and East China Seas, which have injured people, harmed vessels from Asean nations and contradict commitments to peaceful resolution of disputes.”

Japanese broadcasting station NHK said on Thursday it had obtained an “internal document” from the Philippine government that quoted Marcos Jnr as calling on “all Asean Member States not to turn a blind eye to the aggressive, coercive, and illegal actions of an external power against an Asean Member State”.

“Silence in the face of these violations diminishes Asean,” Marcos Jnr was also quoted as saying.

Meanwhile, alongside Marcos Jnr’s appeal to finally conclude a Code of Conduct after decades-long negotiations, Chinese Premier Li Qiang announced on Thursday the “substantial conclusion” of the third version of a China-Asean Free Trade Area.

Li, according to Reuters, also told the summit that China and Asean were “striving for [the] early conclusion” of the Code of Conduct.

In Beijing, on the same day, Chinese foreign ministry spokeswoman Mao Ning said China “remains committed to settling maritime differences with countries concerned through dialogue and consultation on the basis of respecting historical facts and international law”.

Mao added that China would “actively advance the consultations of the code of conduct in the South China Sea, and jointly make the South China Sea a sea of peace, friendship and cooperation”.

A 2016 arbitral ruling in The Hague voided China’s claims to nearly all of the South China Sea. Beijing has rejected this ruling.

Security analyst Chester Cabalza told This Week in Asia on Friday that China must “walk the talk of [a] China-Asean free trade agreement while pursuing a smooth completion of a Code of Conduct in the South China Sea”.

While economics is the lifeblood of strategic cooperation, completion of the Code of Conduct is also “important to achieve peace and prosperity in the dynamic region”, according to Cabalza, founder-president of the International Development and Security Cooperation think tank in Manila.

The Code of Conduct for the South China Sea is a proposed binding agreement between Asean and China to establish rules governing behaviour in the disputed waters, including commitments to avoid militarisation, respect freedom of navigation, and resolve disputes peacefully. Negotiations on the agreement have been ongoing for decades.

Cabalza described China’s strategy of offering trade and investments to Asean states in return for their silence on the South China Sea conflict as “intensified salami slicing in the tense South China Sea”, but said such a move was “no longer adaptable” given that Western developed economies were also keen on investing in the region.

“Many of these Asean countries are seen as engines of growth economically, with or without the China money,” he noted. “Silencing them in their territorial claims in the contested waters does not mean that they will become beggars to Beijing’s slumping economy and ageing human productivity.”

What could break the impasse in negotiations was for claimant countries to adopt a “minilateral approach” to pursuing their own code of conduct, and for China to adhere to and respect an Asean-led Code of Conduct, Cabalza said.

The Philippines and Vietnam are at the forefront of this minilateral approach, with both having agreed to negotiate differences in their overlapping claims in the Spratlys.

Are prospects for China’s exporters picking up on eve of Canton Fair?

https://www.scmp.com/economy/china-economy/article/3281961/are-prospects-chinas-exporters-picking-eve-canton-fair?utm_source=rss_feed

Fernando Ching Lau has spent the past month travelling to trade shows around the world to source products for his new supermarket in Los Angeles.

The 10,000 sq ft store, called Crazy 99 Plus, is positioned as a neighbourhood bargain store, a sector Lau is optimistic about as the US economy continues to recover.

He has visited Thailand, Indonesia, Mexico, Japan and China in search of suitable products, but shifting trade patterns mean Lau no longer considers China’s largest trade fair, the twice-yearly Canton Fair opening next week in Guangzhou, the capital of Guangdong province, to be something he simply has to attend.

“As a businessman, I have participated in the Canton Fair many times,” he said. “In the past 30 years, most daily necessities in the United States were imported from China, but the situation today is becoming very different.

“The supply chain is quietly changing, and even the low-end and mid-end products in cheap supermarkets are sourced globally.”

A record 246,000 international visitors flocked to the spring session of the 67-year-old Canton Fair – formally called the China Import and Export Fair – in April, but the value of deals signed was up just 10 per cent from the previous edition, at about US$24.7 billion – well below the US$29.4 billion recorded at the last pre-pandemic fair in late 2019.

Exports remain a bright spot for China’s economy, contributing 13.9 per cent of gross domestic product growth in the first half of this year. But exporters’ prospects are haunted by Washington’s growing decoupling efforts.

China’s customs administration is due to release September trade data on Monday. In the first eight months of the year exports rose 4.6 per cent year on year.

Buyers from emerging markets are gradually becoming the main players at the Canton Fair, replacing those from Europe and the US. The share of exports to countries involved in China’s Belt and Road Initiative trade development plan rose to 45.8 per cent in the first eight months of this year, from 28.4 per cent in 2018.

The Canton Fair is widely viewed as a barometer of China’s trade prospects.

As of Wednesday, over 125,000 overseas buyers had preregistered for the fair, its organiser said on Thursday.

Among them, 75.7 per cent are from countries along the belt and road plan’s trade routes, while only 12.5 per cent are from European and North American countries, two major destinations for made-in-China products.

At the fair’s April session, nearly two-thirds of the foreign visitors were from countries involved in the belt and road plan, and they signed deals worth US$13.86 billion.

“The common characteristic of these customers is paying low prices after many rounds of price comparison,” said Levi Tan, founder of Lionway Electronics, a producer and exporter of lighting products in Shenzhen, Guangdong, who plans to attend the Canton Fair after it opens on Tuesday.

“Their purchases are concentrated on the basic necessities of life, rather than high-end or complex designed goods.”

Their orders are also relatively small, he added.

Lau, the US businessman, said many product categories were no longer reliant of imports from China.

“It’s not just about the cost, but suppliers in other countries are just as good in quality, and even more flexible and willing to accept small batch orders,” he said. “Hardware products, cosmetics, food, daily necessities and even health products can also find alternatives of comparable quality and cheaper prices in other countries.

“Take TVs as an example. Many Chinese brands have turned to Mexico for production. These 50-inch TVs are still priced at around US$200, which is still cheap. Why? Because these TVs are made in Mexico.”

Stone Xie, the founder of Sontetex, which focuses on textile trade between China and emerging markets, still intends to attend the Canton Fair.

He said many Chinese products, such as electric vehicles, remain very competitive, but competition from other countries is getting stronger.

“Whether it is Southeast Asia, South America, or the Middle East, suppliers worldwide are competing with China,” he said. “Although Chinese manufacturing still maintains advantages in some areas, it is no longer an irreplaceable choice.

“A large number of Chinese export companies in various industries are facing greater survival pressure and have to accept lower profits.”

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Vietnam trip offers Chinese Premier Li Qiang a chance to ease tensions after ‘attack’ on fishermen

https://www.scmp.com/news/china/diplomacy/article/3282009/vietnam-trip-offers-chinese-premier-li-qiang-chance-ease-tensions-after-attack-fishermen?utm_source=rss_feed

Chinese Premier Li Qiang is visiting Vietnam this week amid a sustained effort by Beijing to court its neighbour.

The trip also offers a chance to mend ties following a recent incident in the South China Sea where Hanoi accused Chinese coastguards of beating Vietnamese fishermen and removing their equipment.

Li’s visit, which will include meetings with the country’s leader To Lam and Prime Minister Pham Minh Chinh, will start on Saturday after the end of a regional forum in Laos. It is the Chinese premier’s first trip to the two countries since he took office in March last year.

Announcing details of his trip, Chinese foreign ministry spokeswoman Mao Ning described Vietnam and Laos as “China’s socialist friendly neighbours”, and said the visits were of “great significance in promoting comprehensive strategic cooperation”.

“China hopes that through this visit, it can work with Laos and Vietnam to carry forward traditional friendship, strengthen strategic communication, deepen mutually beneficial cooperation [and] promote people-to-people bonds,” she added.

Hunter Marston, a Southeast Asia researcher at the Australian National University, said the trip followed a pattern of high-level visits between the two countries and efforts to reaffirm ties between the two ruling communist parties.

In August, Lam visited China in his first foreign trip since taking over as party chief where he met his Chinese counterpart Xi Jinping and pledged to deepen cooperation.

“Direct party-to-party ties act to stabilise the relationship as well as compartmentalise sensitive areas such as the maritime territorial dispute,” Marston said. “It is a low-cost way for Beijing to demonstrate that it prioritises bilateral relations and views Vietnam as an important partner.”

Vietnam is among several Southeast Asian countries that have overlapping claims with China in the South China Sea, most of which is claimed by Beijing.

This long-running dispute flares up from time to time and relations reached a low point in 2014 during a stand-off over a Chinese deepwater oil rig near the Paracel Islands.

When they met this year, Xi and Lam pledged to manage the dispute peacefully. But earlier this month, in a rare public criticism, Vietnam accused Chinese law enforcement of beating fishermen and seizing equipment from a boat operating near the Paracel Islands, which Vietnam refers to as Hoang Sa.

Beijing downplayed the incident, saying “no injuries were found” and its handling of what it described as a case of illegal fishing had been “professional and restrained”.

Marston said the visit offered Vietnam a chance to complain about China’s recent actions, and the two sides were likely to express their commitment to a peaceful solution.

“Vietnamese leaders will likely insist that Beijing respect Vietnam’s territorial sovereignty and its rights to make use of natural resources within the country’s [200 nautical-mile exclusive economic zone] without harassment by China’s maritime militia,” he said.

“While this is unlikely to stop China from encroaching into Vietnamese waters, Hanoi’s repeated emphasis makes clear to Beijing that its core national interests remain consistent and demonstrates that Vietnam’s actions are consistent with international law.”

He said this would help strengthen Vietnam’s position with countries that opposed China’s actions and also give it more options if its red lines were crossed.

Huynh Tam Sang, a lecturer at Ho Chi Minh City University of Social Sciences and Humanities, said Vietnam’s leaders were unlikely to be critical but “they would like to see calmer, more productive conversations about how to handle the current tensions in a quiet and respectful way”.

“Li may pay lip service on this – and similar incidents may continue to beset Vietnamese fishermen,” he said.

Phan Xuan Dung, a research officer at the Singapore-based ISEAS-Yusof Ishak Institute’s Vietnam studies programme, said China was “courting Vietnam diplomatically to ensure that Vietnam remains within China’s sphere of influence”.

He said Beijing may be worried about Vietnam’s growing engagements with the West and “does not want to see Vietnam follow the path of the Philippines in seeking US support to challenge China in the South China Sea”.

Lam has been working to forge stronger relations with the West as well as China. Last month he met US President Joe Biden and said the two countries had been transformed from enemies to partners.

Zha Daojiong, a professor at Peking University’s school of international studies, said the visit was a “routine” one and that two countries were likely to highlight joint projects in areas such as infrastructure.

He said China and Vietnam had found a mechanism to “compartmentalise cooperation” in trade and investment and the fact that they were “neighbours by land and sea” was the most “salient” one in their handling of the relationship.

Sang said Li was likely to discuss ways to deepen economic ties and stress the importance of Vietnam to China’s neighbourhood diplomacy.

“Leaders in Hanoi may be reminded of the intertwined nature of China-Vietnam relations by the nuanced message that will follow Li’s visit,” he added.

“Given the close ideological affinity and geographical proximity between China and Vietnam, for Chinese leaders, Vietnam can hardly escape the giant’s orbit.”

China’s Li Qiang calls for ‘rational’ views in talks with EU chief Michel as trade row simmers

https://www.scmp.com/news/china/diplomacy/article/3282058/chinas-li-qiang-calls-rational-views-talks-eu-chief-michel-trade-row-simmers?utm_source=rss_feed

Chinese Premier Li Qiang on Friday said China hoped the European Union would “correctly view” its development and adopt “rational” policies towards the Asian giant as a trade row threatens to devolve into a trade war.

In a meeting with European Council President Charles Michel, Li said the international community expected China and the European bloc to push for healthy, stable and sustainable development of ties as the world faced rapid changes.

“China regards Europe as an important direction for China’s diplomacy and an important partner in promoting Chinese-style modernisation,” he was quoted by Chinese state news agency Xinhua as telling Michel.

“It is hoped that EU institutions will correctly view China’s development and formulate an objective and rational policy towards China.”

The face-to-face talks – held on the sidelines of an Asean regional forum in Laos – came just days after China announced anti-dumping measures against European brandy imports. Beijing’s decision followed an EU vote last week to press ahead with hefty tariffs on Chinese-made electric vehicles.

China also signalled it could slap tariffs on cars imported from the EU to “protect the legitimate rights of Chinese industries and companies”, according to its Ministry of Commerce. The ministry also said the EU’s actions against Chinese-made electric vehicles “seriously lack a factual and legal basis”.

At the World Trade Organization, the European Commission plans to challenge China’s move to impose the anti-dumping measures, which a trade spokesman labelled as “unfounded”.

Separately, the EU had earlier launched an investigation into Chinese subsidies for solar panels and wind turbines while China conducts ongoing inquiries into European pork and dairy products.

Jens Eskelund, chairman of the European Union Chamber of Commerce in China, said on Wednesday that a “full-blown trade war looks more and more likely if nothing changes”.

A Chinese statement after the meeting between Li and Michel, carried by Xinhua, did not refer directly to the tit-for-tat tariffs.

According to the Xinhua report, Michel said the EU viewed its partnership with China with “great importance”, and that the European grouping looked forward to deepening exchanges with Beijing.

“The EU hopes to resolve relevant issues through dialogue and consultation and promote the development of EU-China economic and trade relations,” he said.

On Friday, Michel told Agence France-Presse that he hoped the two sides could come to an agreement in the coming days or weeks “but it is a very difficult situation” and “very challenging”.

“But we have very strong and legitimate interests and it is the responsibility of the European Union to defend our people, to defend our citizens,” he added.

“We count on China to adapt its behaviour and to understand that we have to rebalance the economic relationships for more fairness, for fair competition, for a more level playing field.”

Meanwhile, in a phone call on Thursday with Emmanuel Bonne, foreign affairs adviser to French President Emmanuel Macron, Chinese Foreign Minister Wang Yi urged France to view China’s trade relations with the EU with a “positive and open attitude”.

China’s foreign ministry said Wang described France as an “important economic and trade partner of China in the EU”, and stressed that healthy China-EU ties were in the common interests of both sides.

“It is hoped that the French side will view China-EU economic and trade relations with a positive and open attitude, promote the EU to meet China halfway, and play a constructive role in the consultations and negotiations between the two sides,” he said.

“It is believed that [China and France] have sufficient political wisdom to properly handle differences in specific areas, adhere to mutual respect and win-win cooperation, maintain communication and dialogue and coordinate strong actions, and maintain the development momentum of bilateral relations.”

On Friday, Li said the two sides had maintained high-level interaction and continued to promote dialogue and cooperation, and personnel exchanges had increased “significantly”.

That had “sent a strong signal that China and the EU attach importance to strategic communication and are willing to strengthen cooperation, and continue to inject stability into the world with the stability of China-EU relations,” he said.

With China and the EU marking 50 years of diplomatic ties next year, Li said China was willing to take the opportunity to “further consolidate the stable and positive momentum of China-EU ties, enhance strategic mutual trust, [and] strengthen mutually beneficial cooperation”.

“History and practice have repeatedly proved that as two major global forces for peace and construction, China and Europe have maintained good relations and strengthened pragmatic cooperation, which has been conducive to their respective development, world prosperity and stability, and to jointly addressing global challenges,” he added.

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Tesla’s robotaxi event draws mixed reaction in China where Elon Musk faces tough rivals

https://www.scmp.com/news/china-future-tech/evs/article/3282067/teslas-robotaxi-event-draws-mixed-reaction-china-where-elon-musk-faces-tough-rivals?utm_source=rss_feed

Chinese netizens and industry insiders closely followed Tesla’s much-anticipated “We, Robot” event on Thursday night US time, with mixed feedback given that China is already offering robotaxi services ahead of Elon Musk’s plans.

Tesla live-streamed the event across almost every major Chinese social media platform, including WeChat Channels, Douyin, Kuaishou, Xiaohongshu, Weibo, and Bilibili. It quickly became a top trending topic on Weibo, often referred to as the Chinese version of X.

While many in China praised the technological vision and futurist design presented, critics were disappointed by the lack of concrete updates or immediate real-world applications.

The event took place at the Warner Bros studio lot in Burbank, California, where Tesla showcased a prototype of Cybercab, a two-door autonomous car – much like a hybrid of its Cybertruck and Model Y – with butterfly doors and no pedals or steering wheel. Tesla also unveiled the Robovan, designed to carry up to 20 passengers, and showed off its dancing humanoid robot Optimus.

“The autonomous future is here,” Musk said. “We have 50 fully autonomous cars here tonight. You’ll see model Ys and the Cybercab. All driverless.”

Reactions in China were mixed. A Weibo influencer with 1.2 million followers with the handle “Lilaoba” praised the event, stating, “Chinese car makers should learn from this.”

However, some netizens criticised such praise, saying that these concept vehicles are far from mass production. The also argued that China’s electric vehicles and self-driving technologies already have significant advantages. In China, some tech giants have started testing robotaxis on roads in multiple cities, including a sizeable fleet run by Baidu in Wuhan, capital of central Hubei province. In comparison, Tesla is still awaiting permission for its full self-driving vehicles to be used on Chinese roads.

Tesla offered few details and no firm timeline for production of the Cybercab and Robovan. Musk said the Cybercab, priced below US$30,000, would enter production “before 2027,” with fully autonomous, unsupervised driving expected in Texas and California next year.

China’s self-driving industry is already well established, with major players like search and artificial intelligence giant Baidu, as well as start-ups WeRide and Pony.ai, along with traditional carmakers such as Xpeng.

On Thursday night, ahead of the Tesla event, Xpeng CEO He Xiaopeng posted on Weibo that the company was speeding up its robotaxi efforts, targeting 2026 for launch and focusing on product development rather than operational services.

Baidu’s Apollo Go service is reportedly preparing to enter Hong Kong. Although Baidu has not confirmed the reports, Hong Kong’s Transport and Logistics Bureau said that several driverless vehicle projects are in progress, with licensing expected to be announced by the end of the year.

Guangzhou-based WeRide, which in August received approval to test its driverless vehicles with passengers in California, is set to unveil its next-generation robotaxi on October 15.

Survey finds China’s SMEs still struggling, with liquidity tightening

https://www.scmp.com/economy/china-economy/article/3282035/survey-finds-chinas-smes-still-struggling-liquidity-tightening?utm_source=rss_feed

China’s small and medium-sized enterprises (SMEs) continue to face an uphill battle, with their economic performance still lagging behind pre-Covid levels, according to the latest reading from a semi-official index.

In September, the SME Development Index, which surveys 3,000 businesses across eight major industries, fell to 88.7, the lowest level in a year and well below the pre-pandemic quarterly average of 92.9 in 2019.

The index’s threshold for stable economic conditions is 100, and a reading below 100 indicates a downward or deteriorating economic trend for SMEs.

“The survey of SMEs indicates that the external environment is becoming increasingly complex and challenging, while domestic demand is gradually recovering and policy effects are slowly being realised, with positive factors on the rise,” the China Association of Small and Medium Enterprises said in a report published on Thursday.

“It is crucial to accurately understand the difficulties and challenges faced by SMEs, intensify macroeconomic adjustments, deepen reform and opening-up … [to] create more opportunities for SMEs and private enterprises, boosting their internal drive and growth potential.”

China’s SMEs have been hard hit by the nation’s sputtering economic growth, and their confidence has been dampened by half-hearted government support and sweeping and abrupt regulatory shifts in private sectors such as real estate, video gaming and off-campus education since 2021.

China’s support measures, including a 31-point plan rolled out last year, have been seen as mere “lip service”, with the business environment remaining hostile and the outlook bleak.

In China, more than 90 per cent of companies are small or medium-sized, and they provide most urban jobs.

Among the eight surveyed industries, the indices for the industrial sector, the information transmission and software sector, and the wholesale and retail sector improved marginally in September, but were still well below 100.

Meanwhile, the indices for the other five sectors – hotels and restaurants, construction, social services, transport, and real estate – continued to decline.

Enterprises are also facing tighter liquidity and financing conditions, the report said, with accounts receivable decreasing. Among the eight surveyed industries, five reported a reduction in accounts receivable.

SMEs’ profits have also taken a hit, with seven of the eight surveyed industries seeing a drop in their performance indices, according to the report.

The downturn has dampened investment appetite, with five sectors reporting declines in their fixed-asset investment indices. Regionally, northeastern China saw a slight rebound in development from August, while the eastern region remained flat, and both the central and western regions registered declines.

Beijing should continue to lessen the operational burdens for SMEs, by offering tax and fee cuts, and subsidies, said Xia Ri, a researcher with Anbound, a Beijing-based public policy consultancy.

“It should also implement relatively flexible financial support measures by providing tailored credit support to small and medium-sized enterprises, and improve the business environment by removing invisible market barriers and offering targeted services,” he said.

Also on Thursday, Beijing released a 77-article draft of widely anticipated legislation designed to promote the private economy. It includes measures to promote fair market competition, enhance the investment and financing environment for private businesses, encourage their involvement in scientific projects and technological innovation, and safeguard their economic rights and interests.

Chinese envoy praises Bangladesh student protesters while urging return to stability

https://www.scmp.com/news/china/diplomacy/article/3282046/chinese-envoy-praises-bangladesh-student-protesters-while-urging-return-stability?utm_source=rss_feed

China’s top envoy in Bangladesh praised the “courage and wisdom” of the country’s student protesters while meeting representatives of the movement, some of whom have joined Dhaka’s interim government.

Yao Wen, the Chinese ambassador to Dhaka, met the student representatives on Thursday, commending them for their role in the anti-government movement. The student protests erupted in July and marked the final chapter in a two-year wave of unrest that ultimately led to a regime change in Bangladesh.

“[Yao] appreciated the courage and wisdom shown by the young generation of Bangladesh in the student movement and encouraged the young people to contribute to the country to make it return to the right track of unity, stability, development, and prosperity,” the Chinese embassy said in a statement.

Two student movement leaders, Nahid Islam and Asif Mahmud, were appointed in August to serve in the interim government led by Bangladeshi economist and Nobel Peace Prize winner Muhammad Yunus.

Neither Islam nor Mahmud appeared in photos from Thursday’s meeting published by the Chinese embassy, though the former met Yao earlier this month.

The Chinese envoy met Yunus soon after the interim government was established in August. During that meeting, Yao reaffirmed China’s position of non-interference in Bangladesh’s internal affairs and reiterated Beijing’s respect for the “independent development path” chosen by the Bangladeshi people.

Chinese Foreign Minister Wang Yi also met Yunus on the sidelines of the United Nations General Assembly last month. In the meeting, Wang described Yunus as “an old friend to China” and said Beijing would help Dhaka tackle poverty.

According to the embassy, the student representatives expressed gratitude to China in the Thursday meeting, noting that Beijing sent an emergency medical rescue team to help treat those injured during the summer unrest. They also reiterated their commitment to maintaining Bangladesh-China relations, calling China “a true and reliable friend”.

“Bangladesh is in a critical period of national reconstruction,” the students said. “We are ready to continue making positive contributions to the development of the traditional friendship between Bangladesh and China.”

The protests initially focused on the country’s controversial quota system, which reserves certain government jobs for the families of those who fought in the 1971 war of independence. What began as a demand for reform soon escalated into widespread anti-government demonstrations that turned violent.

The unrest led to the exile and resignation of former prime minister Sheikh Hasina in early August after hundreds of people – mostly students – were killed in clashes.

Bangladesh’s struggling economy remains a challenge for the pro-democracy government’s future.

China is Bangladesh’s biggest trading partner, with bilateral trade totalling 168.4 billion yuan (US$23.8 billion) in 2023, including 161.1 billion yuan in Chinese exports to the South Asian country.

The trade deficit with China has put pressure on the country’s foreign currency reserves, hitting Bangladeshis in their daily lives.

Bangladesh was the first country in South Asia to join the Belt and Road Initiative – the Beijing-led global infrastructure plan – and has built multiple mega-projects financed with Chinese loans.

Yao, the ambassador, noted that China had built “12 roads, 21 bridges, and 27 power and energy projects” in Bangladesh while Chinese companies had created more than 550,000 jobs in the country.

Blinken tells ASEAN the US is worried about China’s ‘dangerous’ actions in disputed sea

https://apnews.com/article/asean-us-china-south-china-sea-blinken-12e98754ad3ece4932254b8a869c02ecU.S. Secretary of State Antony Blinken speaks at the 12th ASEAN-U.S. Summit in Vientiane Friday, Oct. 11, 2024. (Tang Chhin Sothy/Pool Photo via AP)

2024-10-11T03:25:55Z

VIENTIANE, Laos (AP) — U.S. Secretary of State Antony Blinken told Southeast Asian leaders Friday that the U.S. is concerned about China’s “increasingly dangerous and unlawful” activities in the disputed South China Sea during an annual summit meeting, and pledged the U.S. will continue to uphold freedom of navigation in the vital sea trade route.

His comments at a meeting with the 10-member Association of Southeast Asian Nations’ drew swift condemnation from Beijing, which blamed U.S. and other military presences from beyond the region for instability in the waterway, which Beijing claims almost in its entirety.

China has overlapping claims with ASEAN members Vietnam, the Philippines, Malaysia and Brunei, as well as Taiwan. About a third of global trade transits through the sea, which is also rich in fishing stocks, gas and oil. A series of recent violent confrontations between China and Philippines as well as Vietnam have fueled concerns that China’s increasingly aggresive actions in the sea could spiral into a full-scale conflict.

Beijing has refused to recognize a 2016 international arbitration ruling by a U.N.-affiliated court in the Hague that invalidated its expansive claims, and has built up and militarized islands it controls.

“We are very concerned about China’s increasingly dangerous and unlawful activities in the South China Sea which have injured people, harm vessels from ASEAN nations and contradict commitments to peaceful resolutions of disputes,” said Blinken, who is filling in for President Joe Biden, in his opening speech at the U.S.-ASEAN summit. “The United States will continue to support freedom of navigation, and freedom of overflight in the Indo Pacific.”

The U.S. has no claims in the South China Sea, but has deployed navy ships and fighter jets to patrol the waters in a challenge to China’s claims.

In Beijing, Chinese Foreign Ministry spokesperson Mao Ning said U.S. and other military presences from outside the region were the main source of instability in the sea.

“The increasing military deployment and activities in the South China Sea by the U.S. and a few other non-regional countries, stoking confrontation and creating tensions, are the greatest source of instability for peace and stability in the South China Sea,” Mao said.

Chinese and Philippine vessels have clashed repeatedly this year, and Vietnam said last week that Chinese forces assaulted its fishermen in the disputed sea. China has also sent patrol vessels to areas that Indonesia and Malaysia claim as exclusive economic zones.

The U.S. has warned repeatedly that it’s obligated to defend the Philippines — its oldest treaty ally in Asia — if Filipino forces, ships or aircraft come under armed attack, including in the South China Sea.

Philippine President Ferdinand Marcos Jr. complained to summit leaders on Thursday that his country “continues to be subject to harassment and intimidation” by China’s actions, which he said violated international law. He has called for more urgency in ASEAN-China negotiations on a code of conduct to govern the South China Sea. Officials have agreed to try and complete the code by 2026, but talks have been hampered by sticky issues including disagreements over whether the pact should be binding.

In another firm message to China, Blinken said the U.S. is also committed to help protect stability across the Taiwan Strait. The U.S. has in recent years stepped up support for Taiwan, including new military financing last month that sparked protest from China, which claims the self-ruled island as its own territory.

Blinken also attended an 18-nation East Asia Summit, along with the Chinese premier, Russian Foreign Minister Sergei Lavrov, and leaders from Japan, South Korea, India, Australia and New Zealand.

ASEAN has treaded carefully on the sea dispute with China, which is the bloc’s largest trading partner and its third largest investor. It hasn’t marred trade relations, with the two sides focusing on expanding a free trade area covering a market of 2 billion people.

Blinken said the annual ASEAN summit talks were a platform to address other shared challenges including the civil war in Myanmar, North Korea’s “destabilizing behavior” and Russia’s war aggression in Ukraine. The Middle East crisis was also raised, with pro-Palestine Muslim countries like Malaysia and Indonesia repeating calls for an immediate Israeli ceasefire as the war marked its one-year anniversary on Monday.

Blinken also said Israel’s escalated campaign in Lebanon against Hezbollah has “clear and legitimate” reasons, but said the U.S. is trying to find a diplomatic solution to the war. He said it was also important that civilians are protected amid fighting in Lebanon and Gaza, adding that not enough humanitarian aid is reaching north Gaza and other areas.

U.N. Secretary-General Antonio Guterres, who held a separate meeting with ASEAN leaders, called for an urgent political solution to the spreading Middle East conflict. “The level of death and destruction in Gaza is something that has no comparison to any other situation that I have seen,” he said. He also expressed solidarity with Indonesia, after two of its peacekeepers were injured by Israel fire.

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IMF tells Pakistan to stop investment perks, potentially hitting China’s belt and road projects

https://www.scmp.com/news/asia/south-asia/article/3281998/imf-tells-pakistan-stop-investment-perks-potentially-hitting-chinas-belt-and-road-projects?utm_source=rss_feed

The International Monetary Fund asked Pakistan to stop setting up any industrial zone that offers incentives for investment, in a move that may undermine Islamabad’s efforts to attract more Chinese industries into the country.

The authorities will refrain from providing incentives such as tax breaks and subsidies to any new or existing special economic zones, the Washington-based lender said in its report released on October 10. This will help provide a level playing field for investment, the report said.

The IMF’s condition comes as Prime Minster Shehbaz Sharif is trying to convince Chinese companies to shift more industries into Pakistan thereby giving a fresh momentum to projects under its Belt and Road Initiative. The country had planned to build at least nine special economic zones under the China-Pakistan Economic Corridor project that are at various stages of development.

The lender asked Pakistan to offer a level playing field to businesses to attract investments without undermining the country’s tax base, according to Nathan Porter, IMF’s mission chief for Pakistan.

The country has provided protection or concessions to sectors that were low in productivity, he said in a briefing last month, the reason why Pakistan has not been able to achieve the kind of sustainable growth rates many of its regional peers have.

The demand from IMF is expected to immediately hit a new export processing zone that the government plans to build at the site of Pakistan Steel Mills in Karachi, Pakistan’s commercial capital in south.

Pakistan authorities, after securing a US$7 billion loan from the IMF, are working to invite about 100 major Chinese industries to invest in the textile parks that Ruyi Shandong Group will start building in its southern Sindh and central Punjab provinces later this year.

The Sharif government has been wooing investors through offering special tax incentives, including exemptions from paying taxes and customs duties on imported goods, to businesses set up in such industrial zones.

China has built major infrastructure and energy projects in Pakistan to push its flagship economic corridor project that has helped the nation but left the country burdened by huge debts.

The Chinese couple behind a kitchen that helps cancer patients and families

https://www.scmp.com/news/china/article/3282004/chinese-couple-behind-kitchen-helps-cancer-patients-and-families?utm_source=rss_feed

Wan Zuocheng and his wife Hong Gengxiang run a back-alley kitchen near a hospital that treats cancer patients in China’s eastern province of Jiangxi. For just 3 yuan (43 US cents), patients and their relatives can use the kitchen facilities to make home-cooked meals instead of eating hospital food. Many people who use the kitchen say it is a godsend that helps their recovery.

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Apple opens its ‘most extensive’ lab outside US in China amid fierce rivalry with Huawei

https://www.scmp.com/tech/big-tech/article/3282013/apple-opens-its-most-extensive-lab-outside-us-china-amid-fierce-rivalry-huawei?utm_source=rss_feed

Apple has opened an applied research laboratory in the southern Chinese tech hub of Shenzhen, as the US giant bolsters it commitment to the world’s largest smartphone market amid heightened competition with domestic players, including Huawei Technologies.

The facility started operations on Thursday at the Shenzhen Park in Hetao, a cooperation zone developed under the directive of the central government to deepen the city’s tech partnerships with neighbouring Hong Kong, according to a report by state media People’s Daily.

Apple announced in March its plans to build a new Shenzhen lab, which the company said would boost its testing and research capabilities for its major products, including the iPhone, iPad and Vision Pro mixed-reality headset, and also serve to strengthen the firm’s collaboration with local suppliers.

The facility, spanning 20,000 square metres (215,000 square feet) in the initial phase, will become Apple’s research and development hub in the Greater Bay Area – an economic and business centre comprising Hong Kong, Macau and nine cities in Guangdong province.

It will eventually employ over 1,000 domestic and international talents, and become the company’s “most extensive” lab outside the United States, according to the report.

Apple did not immediately respond to a request for comment on Friday.

The Cupertino, California-headquartered firm is boosting its research investment in China in spite of recent efforts to diversify its manufacturing supply chain outside the country. The mainland, together with Hong Kong and Taiwan, constitutes Apple’s largest geographical market after the Americas and Europe.

The company said in March that it has set up research centres in Beijing, Shanghai, Suzhou and Shenzhen. The size of its research and development team in China has doubled in the past five years, it added.

Apple faces growing rivalry in the Chinese smartphone market, where Shenzhen-based Huawei has seen a revival of its handset business. In August, the Chinese giant sold more smartphones on the mainland than Apple for the first time in almost four years, according to a report from research firm CINNO on Wednesday.

That aligned with findings from government think tank China Academy of Information and Communications Technology, which reported a 12.7 per cent year-on-year decline in foreign smartphone shipments, including the iPhone, in the same month.

Apple fell out of the top-five smartphone vendor rankings in China during the second quarter, as its market share shrank to less than 14 per cent, according to research firm IDC.

Its combined sales in mainland China, Hong Kong and Taiwan dropped 6.5 per cent year on year in the June quarter to US$14.73 billion.

Mongolia asks China to extend 24-hour border crossing after trial thrived

https://www.scmp.com/economy/global-economy/article/3282014/mongolia-asks-china-extend-24-hour-border-crossing-after-trial-thrived?utm_source=rss_feed

Resource exporter Mongolia has asked its top trading partner China to extend a 24-hour border crossing for truckers after a six-month trial period expired last week, according to an official in Ulaanbaatar.

“The Mongolian side has expressed its interest to extend the programme,” Tanan Ganbold, head of foreign relations under Mongolia’s Media and Public Relations Department, said this week. She added that China had not replied.

China’s port management office under the General Administration of Customs also did not respond to a request for comment from the Post.

The two countries launched the pilot 24-hour access at the Gobi Desert border of Erenhot in China and Mongolia’s Zamyn-Uud in April, with the trail ending on September 30.

Erenhot, with a population of 76,000, has experienced a boom in trade since the 24-hour freight crossing began as a way to ease truck congestion at the largest land link along the border.

The information office of the regional committee in China’s northern Inner Mongolia autonomous region said last month that trips in both directions along the Erenhot highway, and via its railway ports, had risen by 95 per cent year on year to 1.75 million this year until September 5.

The entry ports saw 442,000 vehicles pass through over the same time frame, double the volume from the same period of 2023, the statement said.

The 24-hour pilot set-up was “very successful”, Mongolian legislator Batshugar Enkhbayar said.

He expects the two governments would eventually extend the 24-hour status and hopes to see it become permanent.

“Truckers who are shipping coal may dump near the border and cross back or they may need to stop somewhere,” he said.

“The Mongolian side is getting bigger due to mining projects in the Gobi region and we’re making sure the crossing is more efficient.”

An end to the 24-hour scheme means trucks must wait longer to complete shipments and factories must wait longer to receive minerals or fuel for production, said Chen Zhiwu, chair professor of finance at the University of Hong Kong.

Delays at the border mean more working hours for truckers, whose additional wages would be reflected in the prices of Mongolian minerals, he said.

Chen said Chinese officials probably still favour the scheme, especially since the two governments fundamentally get along, but they may see less economic urgency compared to the much smaller Mongolian side.

Beijing regards its northern neighbour as a source of minerals, as well as a connector for trade with Central Asia and Russia.

Mongolia, with a population of just 3.4 million, relies on China to buy its exports and invest in mining, among other sectors.

“Mongolia would be affected more because of the smaller economy and few other exports,” Chen added.

Bilateral trade reached US$16.6 billion in 2023 and US$12.3 billion in the first eight months of this year, according to Chinese customs data.

China kept its title as Mongolia’s top export destination in the first eight months of 2024, accounting for 91.5 per cent of all outbound shipments, the official Xinhua News Agency said on Wednesday.

Brisker traffic through Erenhot this year also accelerated border commerce in goods from kitchenware to camel wool, while giving a lift to Chinese tourism, local officials in China said last month.

Former Mongolian minister of road and transport development, Sandag Byambatsogt, said last year that the landlocked country would increase the number of 24-hour ports and transport links along the border with China.

China sends security task force to Pakistan after latest Karachi terrorist attack

https://www.scmp.com/news/china/diplomacy/article/3282024/china-sends-security-task-force-pakistan-after-latest-karachi-terrorist-attack?utm_source=rss_feed

China has sent a task force to Pakistan following the latest terrorist attack and has urged the authorities to step up security measures and ensure the safety of Chinese citizens and projects.

The group arrived in Islamabad on Tuesday and met the heads of Pakistan’s foreign and interior ministries as well as the police, armed forces and intelligence services.

“[The team] demanded that the Pakistani side properly handle the aftermath, spare no effort in treating the injured, thoroughly investigate the truth of the incident, apprehend and punish the perpetrators, and adopt stricter security measures to ensure the safety of Chinese personnel, institutions and projects in Pakistan,” the Chinese foreign ministry said.

The attack in Karachi, carried out by the separatist Baloch Liberation Army (BLA), killed two Chinese nationals and injured several others near Jinnah International Airport on Sunday night when a truck packed with explosives was driven into a convoy.

The Chinese government expressed “shock” at the attack, urging Pakistan to take immediate security measures and conduct a thorough investigation.

On Thursday night, a ceremony for the two victims, attended by China’s consul general Yang Yundong and Chinese and Pakistani officials, was held at the airport before their remains were sent back to China.

Pakistani officials said they were “committed to bringing the offenders to justice at any cost and to enhancing security measures to protect Chinese personnel in Pakistan,” according to the Chinese consulate.

Prime Minister Shehbaz Sharif also has promised a comprehensive inquiry into the attack and reaffirmed Pakistan’s commitment to protecting Chinese nationals and infrastructure projects.

The country’s ambassador to China, Khalil Hashmi, met Liu Jinsong, head of the Asian affairs department at the Chinese foreign ministry, on Tuesday and said Pakistan was committed to improving security and anti-terrorist cooperation.

China’s Ministry of State Security has called for better early warning systems in areas with significant Chinese interests and for better intelligence sharing and law enforcement collaboration. It also said combating terrorism was a “shared responsibility of the international community and a pressing priority”.

The attack has raised concerns about the safety of the China-Pakistan Economic Corridor, a key element of China’s transcontinental Belt and Road Initiative, especially given the unstable security landscape in Balochistan and Khyber Pakhtunkhwa provinces.

The Chinese embassy has cautioned Chinese nationals against going to Pakistan and to avoid those two provinces because of the rise in attacks on Chinese personnel and projects.

The BLA, which wants Balochistan to be independent, has increasingly targeted Chinese interests in Pakistan over the past few years, accusing the country of exploiting local resources.

Next week Pakistan will host a summit of the Shanghai Cooperation Organisation, a regional security group, in the capital Islamabad.

On Thursday, the country’s foreign ministry advised foreign diplomats to restrict their movements during the summit.

They were urged to stay within the Red Zone – an area that covers the summit venue, foreign embassies, key government buildings and other sensitive installations – and the city’s diplomatic enclave, according to local reports.

The local authorities are also restricting the movement of Chinese citizens during the summit, according to Reuters. The report cited an internal security notice, which was shared with the Chinese authorities, saying movements, including between cities and air travel, would be curbed between Monday and Thursday next week.

Half-blind ex-soldier China grandma, 92, amazes many with high scores at shooting range

https://www.scmp.com/news/people-culture/trending-china/article/3281768/half-blind-ex-soldier-china-grandma-92-amazes-many-high-scores-shooting-range?utm_source=rss_feed

A 92-year-old grandmother from China who is blind in one eye, turned out to be a crack shot, much to the amazement of onlookers during an overseas trip.

The elderly woman achieved extremely high scores using live ammunition at a shooting range in the central Asian country of Kazakhstan, where she was visiting with her son from eastern China’s Zhejiang province.

The nonagenarian was once a soldier in the Chinese People’s Volunteer Army (CPVA) serving in the Korean war in the early 1950s, the Xiaoxiang Morning Herald reported.

A video of Li Guifang, uploaded on Douyin by her son Wang at the beginning of October attracted half a million likes and 20,000 comments from mainland online observers praising her skills.

Wang said that, at first, the shooting range in Kazakhstan would not allow his mother to fire because of her age.

However, after hearing she was a veteran, they agreed and gave her a small-bore rifle with a sighting device and minimum recoil.

Li’s vision is impaired in her right eye, which has cataracts. So she had to cock her head and rely solely on her left eye when shooting, said Wang.

“It’s more difficult for her than for other people. But she achieved pretty good results by focusing all her attention on the task,” he was quoted as saying.

During one shooting round with a 10-ring target, Li fired 10 shots, landing seven in the inner ring and three in the outer ring, making the total score 97 points.

In another round, the old woman again achieved a high score of 87 points.

The Korean war erupted in 1950 between North Korea and South Korea. The People’s Republic of China, which supported the northern side, deployed the CPVA.

The CPVA comprised about two million soldiers, most of whom were in their 20s, who joined until the war ended in 1953.

Wang said his mother was a signaller and had not been to the frontline.

“But she received shooting training in the military. She did not practice shooting for many decades. As a veteran, she still has some memory about it and would like to try it again,” Wang said.

He said his mother is in a good physical condition and has travelled to more than 60 countries to have new experiences.

“She even skydived,” he said, adding: “She likes to try the same activities as young people.”

Mother and son took the trip to Kazakhstan to attend the wedding event of a young man who studied in China and became a friend of Li’s after she got to know him through a tour guide.

Li’s shooting scores astounded and delighted internet users in China.

“I realise I’m not as strong as a 92-year-old granny. She is such an excellent shooter. Salute to the granny!” one user wrote on Douyin.

“She will make foreigners wonder if China really has banned guns,” another joked.

Chinese scientists hack military grade encryption on quantum computer: paper

https://www.scmp.com/news/china/science/article/3282051/chinese-scientists-hack-military-grade-encryption-quantum-computer-paper?utm_source=rss_feed

Chinese scientists have mounted what they say is the world’s first effective attack on a widely used encryption method using a quantum computer.

The breakthrough poses a “real and substantial threat” to the long-standing password-protection mechanism employed across critical sectors, including banking and the military, according to the researchers.

Despite the slow progress in general-purpose quantum computing, which currently poses no threat to modern cryptography, scientists have been exploring various attack approaches on specialised quantum computers.

In the latest work led by Wang Chao, of Shanghai University, the team said it used a quantum computer produced by Canada’s D-Wave Systems to successfully breach cryptographic algorithms.

Using the D-Wave Advantage, they successfully attacked the Present, Gift-64 and Rectangle algorithms – all representative of the SPN (Substitution-Permutation Network) structure, which forms part of the foundation for advanced encryption standard (AES) widely used in military and financial sectors.

AES-256, for instance, is considered the best encryption available and often referred to as military-grade encryption.

While the exact passcode is not immediately available yet, it is closer than ever before, according to the study.

“This is the first time that a real quantum computer has posed a real and substantial threat to multiple full-scale SPN structured algorithms in use today,” they said in the peer-reviewed paper.

The findings were published on September 30 in the Chinese Journal of Computers, a Chinese language academic journal run by the China Computer Federation (CCF).

Due to the sensitivity of the topic, Wang said he would not be interviewed, for the time being.

D-Wave Systems, the world’s first quantum computing company, originally designed the D-Wave Advantage quantum computer to solve some practical problems. The machine has been used by Lockheed Martin to test fighter jet control software and by Google for image recognition tasks, having no direct connection to cryptographic decryption.

The D-Wave Advantage quantum computer employs an algorithm named quantum annealing, which simulates the metallurgical process of heating and then cooling to toughen metal. It enables the rapid resolution of mathematical challenges.

It works like guiding a ball to find the lowest point in a terrain with hills and valleys. Traditional algorithms explore every possible path across this terrain, requiring the ball to repeatedly climb up and down, similar to the temperature changes during annealing.

However, in the quantum world, thanks to the quantum tunnelling effect, the ball can directly tunnel to the lowest point. Thus, the quantum annealing algorithm can quickly approach the best overall solution.

Wang described it in his paper as akin to “an artificial intelligence algorithm with the ability to globally optimise solutions”. His team combined this algorithm with traditional mathematical methods to devise a new computational architecture.

A quantum computing expert who wished to remain anonymous said “the D-Wave Advantage is specifically adept at solving binary optimisation problems. This study’s significance lies in transforming a real-world issue into a binary optimisation problem that a quantum computer can handle”.

Despite these advances, Wang noted the current limitations of quantum computing. He said it had much potential but was hindered by environmental interference, underdeveloped hardware and the inability of a single attack algorithm to target multiple cryptographic systems.

As the field of quantum computing evolves, further breakthroughs are anticipated.

“Through this exploration, it is expected to establish a computing architecture that combines artificial intelligence algorithms with quantum effects and mathematical methods in the future,” he said in the paper.

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China’s Li Qiang and Japanese PM Ishiba pledge stable ties in first meeting

https://www.scmp.com/news/china/diplomacy/article/3281969/chinas-li-qiang-and-japanese-pm-ishiba-pledge-stable-ties-first-meeting?utm_source=rss_feed

Chinese Premier Li Qiang has urged the promotion of strategic and mutually beneficial relations with Japan while maintaining the stability of global supply chains, in his first meeting with the new Japanese Prime Minister Shigeru Ishiba.

In his remarks, Li said he hoped that Japan and China could “meet each other half way and keep the relationship on the right track”, while continuously strengthening dialogue and cooperation, according to the Chinese foreign ministry.

The meeting, on the sidelines of the Asean summit in Laos on Thursday, was the first high-level exchange between the neighbouring countries since Ishiba’s ascension to the role on October 1.

Both sides have also been pushing to stabilise ties after the killing of a Japanese boy in China last month and a series of diplomatic rows on a range of issues between Beijing and Tokyo.

In the meeting, Li noted that China is ready to work with Japan to capitalise on their respective comparative advantages, and explore more areas of cooperation in scientific and technological innovation, the digital economy and green development.

According to the foreign ministry readout, Li also reiterated Beijing’s concerns over export restrictions imposed by Japan.

“The two countries should make good use of the dialogue mechanism on export controls, and jointly safeguard the stability and smooth flow of industrial and supply chains and the global free trade system,” he said.

The Chinese readout quoted Ishiba as saying that Japan “does not intend to decouple or sever supply chains … but rather hopes to deepen practical cooperation across various sectors”.

According to the Japanese foreign ministry’s readout, the two leaders agreed to maintain multilayered communications “at all levels”, including at the summit level.

Despite calls for cooperation and dialogue, Ishiba also took the opportunity to voice Tokyo’s concerns over the increasing Chinese military manoeuvres that have been taking place around Japan.

These included claims by Japan that a Chinese reconnaissance plane made an incursion into Japanese airspace in late August, as well as the passage near Japan’s territorial waters in September of the aircraft carrier Liaoning and two destroyers.

Ishiba also touched upon the fatal stabbing attack on a Japanese boy in Shenzhen, southern China, which sparked concerns about anti-Japanese sentiment in the country.

He strongly urged Beijing to quickly explain the case, implement security measures to protect Japanese expatriates, and crack down on malicious and anti-Japanese social media posts.

Ishiba, who calls himself a “military geek”, is poised to significantly strengthen the country’s defence capabilities and roll out innovative security policies, but many of his security proposals are set to make China wary about the regional security dynamic.

These include a Nato-like security framework in Asia, deploying Japanese troops on US soil, and reconsidering the sharing of US nuclear weapons.

But Ishiba did not mention his proposal for an Asian version of Nato during his meeting with Li, nor in his separate meeting on Thursday with South Korean President Yoon Suk-yeol.

In their encounter on the Asean sidelines, Ishiba and Yoon affirmed that they would further strengthen security cooperation between Japan, South Korea, and the US, according to the Japanese readout of the meeting.

China-Japan ties have been marked by a long list of contentious issues, from historical wartime grievances and territorial disputes to Japan’s export limits on semiconductors, and its tilt towards US-led regional security groupings aimed at countering China.

However, there has been a rare positive glimmer in the relationship recently as Beijing agreed to gradually restart importing Japanese seafood, a year after halting it because of concerns over the release of treated waste water from the Fukushima nuclear power plant.

In late September, China announced it would take part in long-term international monitoring of the water and would gradually resume imports that comply with regulatory standards.

Experts are advocating for greater high-level interactions between the top leaders of China and Japan.

The last visit by a Japanese prime minister to China was by the late Shinzo Abe in 2019. Although an invitation was extended to Chinese President Xi Jinping to visit Japan, it has not eventuated.

Many hope Ishiba’s approach to China could help to repair the fraught bilateral ties, or at least avoid further deterioration.

In his first policy speech last week, Ishiba said he wants to build a constructive and stable relationship between Japan and China and for Tokyo to engage its neighbour in dialogue at all levels.

From cosmetics to cuisine: how Korean influence is reflected in Chinese consumer tastes

https://www.scmp.com/business/article/3281967/cosmetics-cuisine-how-korean-influence-reflected-chinese-consumer-tastes?utm_source=rss_feed

Zhao Siqi’s outlook on Korean products has evolved. The 28-year-old financial services worker in Shanghai is partial to “History of Whoo”, a cosmetics brand endorsed by Kim Ji-won, the star behind TV dramas such as Descendants of the Sun and The Heirs.

But it is Korean food that Zhao craves more. Whenever she is in the mood for something spicy, she turns to ramyeon, the Korean version of instant noodles.

The same is true about her friend Ashely Sun. The 23-year-old university graduate student was introduced to Buldak Bokkeum-Myeon, the spicy instant noodles endorsed by Korean girl group (G)I-DLE.

Zhao and Sun typically represent Chinese consumers’ attitudes towards Korean products, who are spending more on Korean food and less on cosmetics and skincare products.

“China has a well-established market for K-food products,” said Sunny Moon, research manager at Euromonitor International. “The trend is not limited to food alone. The environment and atmosphere portrayed in K-dramas – such as street food scenes featuring tteokbokki, corn dogs, dakgangjeong, the sweet and spicy fried chicken – are being commercialised.”

In 2017, Korean beauty products had the largest share of the Chinese cosmetics market among foreign brands, according to a report by South Korean media. Three years later, Korean brands’ share of cosmetics fell to fourth following Beijing’s restrictions on exports from its neighbour. Last year, their share decreased to 14.2 per cent from 27 per cent in 2017.

Meanwhile, food exports to China rose 5.2 per cent to US$1.1 billion in the first nine months of the year, compared with the same period last year, according to data from South Korea’s ministry of agriculture, food and rural affairs. China was the third-largest market after Southeast Asia and the US.

Ramyeon is particularly popular among Chinese consumers. Exports of instant noodles rose by nearly a fifth to US$181 million in the year to September, making China the largest overseas export market, according to the data.

Exports of processed rice-based products such as pre-cooked frozen kimbap or the Korean seaweed rice rolls, pre-cooked rice products and tteokbokki, or spicy stir-fried rice cakes, to China also increased by 24 per cent to US$6 million in the same period. Overall exports from this category hit a record US$217.9 million in the year to September, exceeding last year’s total of US$217.2 million, according to the data.

“Exports of processed rice-based products are expected to rise, as these products have entered online platforms targeting global markets, as well as large retail stores in China,” the ministry said in a statement last week.

The surge in China’s demand for Korean food has coincided with the easing of restrictions on Korean content imposed in 2017 after Seoul installed a US-made missile defence system.

South Korea said the Terminal High Altitude Area Defence system was intended to deter threats from North Korea. At the same time, China viewed it as a security risk that could be used to spy on military activities.

The unofficial ban led to the conspicuous absence of Korean dramas and artists from Chinese TV and other media platforms. In 2021, a deal between China Media Group and Korean Broadcasting System signalled an easing of the curbs, leading to meetings between Korean stars and Chinese fans on the mainland.

More than 20 K-pop bands, such as NewJeans, Le Sserafim and EXO, have held fan signing events in Beijing, Guangzhou and Qingdao, according to a report by the state-backed Global Times newspaper in January.

With Hong Kong and Macau remaining open to concerts and other events by Korean stars, Chinese fans had other avenues to see their idols perform or meet them in person.

“There is a growing market for services, accessories and other related industries that capitalise on the cultural experiences depicted in K-dramas,” Moon said. “This indicates a broader trend where the cultural aspects of K-content are not only influencing food and fashion, but are also paving the way for new business opportunities that encompass a wider range of consumer experiences.”

Hong Kong-based cosmetics and beauty products retailer Sa Sa International remains confident in the sales of Korean cosmetics brands in China.

“The popularity of Korean culture has been apparent for a sustained period and remains strong in the region,” said Danny Ho, executive director and chief financial officer of Sa Sa. “Korean products, bolstered by a strong new brand presence, have led the growth of niche markets in recent years, catering to Gen Z’s preference for personalised products.”

The sales for the segment, which includes lip tints, make-up fixers, pads and niche fragrances, have grown modestly, Ho said, adding that this is the second-largest product source by sales.

The segment’s strength is particularly apparent in skincare, and the sales of Korean brands are anticipated to grow in the coming years, he added.

Not everyone is convinced about a sustained rebound in Korean cosmetics sales to Chinese consumers.

“The charm of ‘the Korean wave’ in the beauty products sector has reduced,” said Sowmya Srinath, director for advisory services at Frost & Sullivan, which forecasts a moderating decline in Korean beauty products sales in China.

“Korea played in the mid-tier beauty products segments, which is now replaced by competitive Chinese products,” Srinath said. “The efforts from the leading Korean brands to revamp their marketing and positioning in China is likely to [somewhat] help in this stabilisation.”

Old devices, idle servers can be turned to spy on us, China’s top security agency warns

https://www.scmp.com/news/china/politics/article/3281974/old-devices-idle-servers-can-be-turned-spy-us-chinas-top-security-agency-warns?utm_source=rss_feed

Foreign spy agencies have been using idle or discarded network devices belonging to Chinese firms, including servers and cameras, to launch cyberattacks and steal China’s national secrets, the country’s top anti-espionage agency warned on Friday.

The Ministry of State Security (MSS), posting on the Chinese messaging app WeChat, said it had noticed the trend in recent years.

In one case, a foreign spy agency had taken control of a Chinese firm’s server that remained in the company’s computer room even though it was no longer in use. The server was then used to launch a spy attack, the ministry said in the article.

The MSS said that in another case, a camera monitoring platform was attacked, with analysis showing that the platform’s server held the usernames and passwords for many users’ cameras. The system had not been maintained or updated for a long time, leading to a high risk of data leaks, the article said.

The ministry said that if a spy agency took control of the platform, it could manipulate its cameras and use them to steal secrets. Meanwhile, network ports could also be controlled by overseas agencies to log onto servers and launch attacks.

The MSS cautioned that as China’s network equipment was upgraded, the risks pertaining to idle equipment also increased and that units with access to top secrets should better manage this equipment and better train staff to carry out periodic checks and prevent the risk of leaks.

Furthermore, idle equipment in information systems should be checked, ports no longer in use should be closed and any security loopholes plugged, the MSS said.

“Chinese citizens and organisations are required to work with national security agencies to prevent and investigate cyber espionage activities,” it said. “They should strengthen their knowledge on cybersecurity, increase awareness and build a safety network.”

The MSS opened a WeChat account in August last year and has since warned the public about the perils of several everyday activities, saying foreign spy agencies had used them to penetrate firms and steal secrets, or turn Chinese citizens against their government.

It said foreign spies had posed as internet dates or academic consultants or launched photography projects, recruited college students for “high-paying part-time jobs” and sent emails that could hack private mailboxes.

In its posts, the ministry has only named the British Secret Intelligence Service, or MI6, and the United States’ Central Intelligence Agency (CIA) in its accusations against foreign agencies. In all other cases, it simply used the descriptions “some country” and a “foreign spy agency”.

Previously, it said it had cracked a major espionage case involving a married Chinese couple who worked for the government while passing information to MI6. It also accused the CIA of being behind a handful of espionage cases, such as turning a worker in a Chinese state-run arms company to spy for them.

China’s C919 jet, US presidential election: SCMP’s 7 highlights of the week

https://www.scmp.com/news/world/article/3281786/chinas-c919-jet-us-presidential-election-scmps-7-highlights-week?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 .

When China set off on its long-haul endeavour to build and fly a modern commercial airliner, it aimed high. Now, it will need to take a detour to learn from another foreign manufacturer to achieve its lofty goal.

Chinese actress Qin Lan has become a role model for women’s rights in China after her quote, “my uterus is none of your business,” went viral. Qin is an independent, outspoken individual who defies conservative values like the pressure to marry and have children at an appropriate age.

British police have described a Hong Kong-born doctor as “utterly despicable” after he was found guilty of disguising himself as a nurse and attempting to murder his mother’s partner by injecting him with a poison-laced fake vaccine.

After a prolonged building boom, the number of people pursuing civil engineering degrees in China is dwindling. China’s housing and infrastructure sector has slowed, shrinking hiring demand and earnings, and dimming interest among students for related degrees.

America’s 2024 general election has many quirks like divergent voting processes, the outsize influence of “swing states” and uncertainties about how congressional results will affect the next president’s ability to govern. We look at how voting is carried out and some factors that may affect the timing of results.

Embattled former Philippine mayor Alice Guo, who has been charged with crimes linked to illegal offshore gambling operations and accused of being a Chinese spy, is planning to run for office again, raising alarms over the potential threat to national security and loopholes in the country’s election laws.

Visitor numbers from Japan to Hong Kong have more than doubled so far this year, driven by the city’s vibrant attractions and targeted promotions. However, travel industry analysts say that concerns such as the weak yen may dampen the potential for future growth.

Love can turn physical pain to pleasure, a China-US brain study on spicy food finds

https://www.scmp.com/news/china/science/article/3281905/love-can-turn-physical-pain-pleasure-finds-china-us-brain-study-spicy-food?utm_source=rss_feed

Why do some people love spice, while others hate it? That is the question at the centre of a Chinese-American study into how our expectations alter the way our brains respond to sources of pain.

Capsaicin, the active component of chilli, can stimulate pain receptors on the human tongue.

But responses to this can be poles apart, which has puzzled scientists.

The new study shows that positive expectations can reduce the perceived intensity of spice and increase enjoyment, while negative expectations can worsen feelings of discomfort or pain.

“Expectations shape our perception, profoundly influencing how we interpret the world,” the researchers wrote in a paper published in peer-reviewed journal PLOS Biology on Tuesday.

“Positive expectations about sensory stimuli can alleviate distress and reduce pain (eg placebo effect), while negative expectations may heighten anxiety and exacerbate pain (eg nocebo effect),” the team from East China Normal University, Virginia Tech, University of California, Berkeley and Wake Forest University School of Medicine wrote.

Recent studies had indicated that expectations could modulate sensory and emotional responses, including activation of the endogenous opioid, reward and descending pain modulatory systems, the team wrote.

To investigate the impact of “hedonic expectations” – or beliefs about the anticipated like or dislike of a stimulus – on a subjective experience, the team decided to examine neurobehavioural responses to hot sauce among study participants.

“I was intrigued by how people experience the same physical sensation in contrasting ways. Some, like myself, love spicy food, while others find it painful and hard to tolerate,” lead author Yi Luo, an investigator at East China Normal University, said in an interview with the journal.

“This made spicy food a unique and controlled way to explore how expectations and preferences shape pain perception.”

Participants who either “liked” or “disliked” spicy flavours were given high or low intensity hot sauce – or water – and asked to continuously rate their sensory experience, such as how “spicy” their mouths felt and how much they enjoyed the taste.

With the participants under functional magnetic resonance imaging (fMRI), the team did two rounds of testing to show how visually cueing spice levels affected participant ratings.

The researchers found that patients with positive expectations for spice exhibited more activity in parts of the brain associated with the placebo effect and “pleasure signatures”, whereas those with negative expectations had more brain activity associated with pain signatures.

“I was surprised by how strongly negative expectations amplified the brain’s pain response, even though the stimulus was the same. This highlights how our anticipation of discomfort can significantly intensify the experience of pain,” Luo said.

“These findings demonstrate that hedonic aspects of one’s expectations asymmetrically shape how the brain processes sensory input and associated behavioural reports of one’s subjective experiences of intensity, pleasure and pain,” the team wrote.

In the first round of testing, the participants were given neutral cues that did not indicate the spice level of the liquid they were about to receive. In the second round, they were shown colour-coded visual cues of the spice levels.

“Presenting the neutral cue run before the intensity cue run was strategically chosen to establish a baseline response to the neutral cue before introducing the potential interference or contamination from intensity cues,” the team wrote.

“In people who preferred the spicy sauces, the subjective experience of spiciness intensity changed after simply observing a predictive visual cue that generated an expectation of capsaicin intensity”, and led to increased activity in pleasure-related areas in the brain, the researchers said.

While the visual cues did not affect the subjective rating of intensity for those who disliked spice, it did decrease their rating of pleasantness of the sauce.

“Together, our results show that even when the sensory experience is the same, hedonic expectations modulate people’s conscious reports of their subjective experiences,” the team wrote.

“I hope this study encourages further exploration into how expectations shape our sensory experiences, potentially informing strategies for managing pain and enhancing therapeutic outcomes,” Luo said.

“I’m interested in exploring how cultural and individual differences in food preferences might influence the expectation effects we observed, potentially uncovering new ways to personalise pain management strategies based on someone’s unique background and experiences.”

Can China find a way out of its moral crisis?

https://www.scmp.com/opinion/china-opinion/article/3281481/can-china-find-way-out-its-moral-crisis?utm_source=rss_feed

Last month, a startling incident in Kunshan, Jiangsu province, captured nationwide attention. Someone hurled human waste from a high-rise residential building, splattering it onto a ground-floor window.

In a bid to force the culprit to come forward, estate management, in collaboration with local police, ordered DNA tests for all residents of the building. This sordid story quickly spread across social media, once again igniting debate about the decline of public civility and moral standards in modern China.

Throwing rubbish from tall buildings has become disturbingly common. According to reports, from mid-2016 to 2018, Chinese courts heard 31 criminal cases involving high-rise littering, half of which resulted in deaths.

Some people online used the term quede, meaning “unethical” or “morally wrong”, to describe the Kunshan incident. I also see it as immoral and in violation of the accepted code of social behaviour. In another egregious example, two bike repairmen in Chengdu were caught deliberately placing blades on the road, in the hope of profiting from motorcyclists’ misfortune.

The situation seems equally dire online, with news being distorted to attract attention. Last year, a headline misleadingly announced the death of director Zhang Yimou when it was actually his teacher who had died.

As online fraud and financial crime proliferate, in-person crime is also on the rise. On the eve of National Day, a 37-year-old man armed with a knife attacked random shoppers in a Shanghai supermarket, killing three and injuring 15 more. Reports suggest his rampage was fuelled by personal grievances.

China has engaged in an extended public reckoning over the state of its moral compass since the 2011 “Yueyue incident”, when a two-year-old girl was run over twice and left to die on a busy street in Foshan, Guangdong province. In 2013, a blogger named “I am Pockmark Zhang” coined the term zui quede, or “most immoral”, which swiftly gained traction on social media.

It is hard to make a definitive judgment on whether the nation’s moral crisis has deepened over the past decade. Some optimists argue that it has not. They might point out that social media amplifies and spreads news of immoral acts quickly, giving the illusion of widespread ethical decay. Personally, I believe the situation has, at the very least, not improved.

Professor He Huaihong, an ethicist and philosopher from Peking University, has been an outspoken critic of China’s moral decline. In his 2015 book Social Ethics in a Changing China, he attributed the erosion of traditional values to the rise of materialism and utilitarianism in society.

His arguments resonate with me. However, this ethical decline is not intrinsic to Chinese culture. Societal changes breed some level of disorder. In the reform and opening up period, China has undergone a dramatic transformation, from a highly egalitarian, centrally planned economy into a market-oriented one.

As capitalism took root, people became more materialistic and focused on personal gain. Meanwhile, moral standards eroded under the weight of collusion between government officials and businesspeople who amassed wealth at the expense of society. As a result, public trust withered, corruption spread and the fabric of society’s ethics frayed.

President Xi Jinping’s high-profile anti-corruption campaign has recorded many successes in hunting “tigers” and swatting “flies”, or stamping out corruption among high-ranking officials and low-level functionaries. However, the problem persists, largely because of a lack of transparency and independent oversight.

The rise of digital technology, including social media and e-commerce, has only accelerated the shift towards individualism.

Social media offers platforms for self-expression, encouraging people to share their lifestyles and opinions. It has also cultivated a culture of instant gratification and fuelled consumerism, especially among younger generations. Many younger Chinese were raised as only children, quite apart from the traditional values of collectivism.

Of course, China is not alone in grappling with declining ethics. For a nation that has long taken pride in its foundation of moral values and Confucian philosophy, its current state is deeply unsettling. Improvement is necessary.

There is no quick fix. Moral standards do not automatically rise alongside economic development. It is unrealistic to expect spontaneous growth in individual ethics without intentional efforts. A revival of morality must be rooted in education and promotion of traditional values, such as maintaining social harmony, fulfilling one’s responsibility in relationships and upholding ethical standards as well as strengthening modern law enforcement.

In April, a court in Changzhou, Jiangsu province, sentenced a woman to three months in prison for repeatedly throwing bags of excrement from the window of her 10th-floor flat. The law can curb the stench of moral decay, but true moral renewal depends on us all.

Mainland China detains four Taiwanese employees at Apple’s ‘iPhone city’

https://www.scmp.com/tech/policy/article/3281949/mainland-china-detains-four-taiwanese-employees-apples-iphone-city?utm_source=rss_feed

Chinese police have taken into custody four Taiwanese employees at Hon Hai Precision Industry, Apple’s main assembly partner, the latest in a spate of detentions that have rattled investor confidence in the country.

Police in the central mainland Chinese city of Zhengzhou detained the quartet on charges of breach of trust, according to a statement from Taiwan’s Mainland Affairs Council on Wednesday. Zhengzhou is where Hon Hai, the flagship company of Foxconn Technology Group, operates the world’s largest iPhone assembly plant.

The four employees are all Taiwanese, according to Elsie Tsai, spokeswoman for Taiwan’s semi-official Straits Exchange Foundation, which provides administrative support for Taiwanese with their affairs in mainland China.

The employees have not damaged Hon Hai’s interest in any way, the council said in the statement, citing its understanding from the company. The incident could have been a result of some local police officers abusing their power, according to the council.

Local media in Taiwan reported that the four Hon Hai employees were detained earlier this year.

A Foxconn representative did not have immediate comment on Thursday, which is a holiday in Taiwan. Mainland China’s Taiwan Affairs Office also did not immediately respond to a faxed inquiry.

It is unclear what exactly triggered the move. Foxconn’s iPhone plant in Zhengzhou – called “iPhone City” because it cranks out most of Apple’s marquee devices – is considered one of the country’s signature manufacturing projects. It employs hundreds of thousands and delivers a major boost to the economy of the landlocked province of Henan.

Last year, Chinese regulators conducted tax audits and reviewed land use by Foxconn when company founder Terry Gou was bidding to become the leader of democratic, self-ruling Taiwan, which Beijing sees part of its territory.

Later in 2023, Chinese tax authorities handed out a 20,000 yuan (US$2,800) fine to a Foxconn subsidiary for overstating expenses. It is still unclear whether Chinese regulators have completed their probe into Foxconn.

Beijing has taken aggressive actions against the staff of foreign firms in recent years as tensions with the US and its allies mount, spurring concerns about the safety of employees at multinational firms.

An executive at Japanese drug maker Astellas Pharma was indicted for espionage in August.

Before that, Beijing fined US-based Mintz Group about US$1.5 million for illegal data collection, months after officials raided its offices and detained five of its Chinese employees.

More similar incidents took place in 2023. American consultancy Bain & Company said Chinese authorities questioned staff at its Shanghai office, and security officials publicised a raid at Capvision, a consulting firm with headquarters in New York and Shanghai, accusing the company of abetting espionage efforts by foreign forces.

Authorities also detained an executive and two former employees of WPP, one of the world’s biggest advertising companies.

Why the collapse of the Soviet Union haunts China’s 75th anniversary | Podcasts

https://www.economist.com/podcasts/2024/10/09/why-the-collapse-of-the-soviet-union-haunts-chinas-75th-anniversary

A handpicked article read aloud from the latest issue of The Economist. On the 75th anniversary of the foundation of Communist China, memories of the collapse of the Soviet Union loom large.

Listen on: Apple Podcasts | Spotify

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Japan takes steps to protect pharmaceutical supply to forestall potential China curbs

https://www.scmp.com/week-asia/economics/article/3281913/japan-takes-steps-protect-pharmaceutical-supply-forestall-any-china-curbs?utm_source=rss_feed

Japan is seeking to protect its pharmaceutical supply chain for the long term, with analysts saying the pre-emptive move is due to fears of China using exports to its neighbour as a bargaining chip in the event of a deterioration in bilateral ties.

Such a scenario for the local pharmaceutical sector is plausible given that China curbed shipments of rare earth minerals to Japan following a dispute in the East China Sea in 2010, according to analysts.

Japanese authorities want local pharmaceutical companies to increase their investments and manufacturing of essential medicine ingredients to mitigate potential shipment disruptions from China, Kazuhiro Tateda, president of the Japan Association of Infectious Diseases, told This Week in Asia.

“The Japanese government is acting now to be prepared for a crisis, although I would have to say it started late and has some catching up to do,” said Tateda, who was a member of a government-appointed panel to advise Tokyo on the Covid-19 pandemic.

“We did not have shortages of key drugs during the pandemic, but it is easy to see pharmaceutical components being used in the same way as rare earth minerals were in the past.”

Japan imported US$451 million of pharmaceutical products from China in 2023, or 0.84 per cent of the country’s total imports for the sector, up from US$419 million in the previous year, according to United Nations data. In comparison, the US was the biggest supplier of Japan’s pharmaceutical products last year at US$76 billion, or 21.1 per cent of the total.

In 2010, both countries were embroiled in a row after a Chinese trawler was found operating within Japan’s exclusive economic zone around the disputed Diaoyu Islands in the East China Sea and collided with a Japanese coastguard vessel. The captain and 14 crew members of the Chinese ship were arrested and detained in Okinawa, with the captain released and returned to China 17 days after the incident.

The clash at the islands administered by Japan and claimed by China– referred to by the Japanese as the Senkakus – led to a rapid decline in ties. Ambassadors were summoned on both sides, bilateral meetings were cancelled and four Japanese employees of Fujita Corp were detained in China for allegedly filming military installations.

Trade data showed that China halted exports of rare earth minerals to Japan for two months immediately after the incident, although Beijing never explicitly stated that the two issues were connected. China produces about 60 per cent of the world’s rare earth minerals, which are used in components of products ranging from mobile phones and computer hard drives to electric vehicles.

There were allegations that Beijing had also used exports from other countries as leverage in disputes. In 2018, Australia’s ban on Chinese telecommunications companies from bidding for 5G contracts and then Prime Minister Scott Morrison’s support in 2020 for an international inquiry into the pandemic’s origins led to tariffs imposed by China on Australian exports, ranging from wine to barley.

In 2022, Tokyo designated four antibiotics as “critical goods”. The following year, it named Meiji Seika Pharma and Shionogi Pharma as key partners in the campaign to step up domestic production of antibiotics. It has also provided around 55 billion yen (US$369 million) in funding to invest in the two companies.

The Sankei newspaper reported that the funding has helped Meiji Seika to construct a major facility for the production of active ingredients used in penicillin-based antibiotics. The company halted production of the ingredients around 30 years ago as it became more cost-effective to import them. It plans to start full-scale operations of the facility by 2025 and produce 200 tons of such ingredients annually.

“Yes, there has been a penicillin shortage in the last few years but the government’s help with constructing factories is designed to solve that problem,“ said Tateda.

“Most of the ingredients for our medicines are already made in Japan, but it is a potential problem when some that are necessary are not manufactured here.”

Ryo Hinata-Yamaguchi, an associate professor at Tokyo International University specialising in defence and security issues, said the nation’s ability to produce enough medicines to meet the needs of the Japanese people was “simply an economic security issue”.

“I see this as a protective measure to reduce or limit our dependence on China in this important sector,” he said.

Citing two potential reasons for Tokyo’s move, Hinata-Yamaguchi said: “One is Japan’s concern that China could deliberately withhold its exports to Japan in a measure designed to hurt Japan.” He cited the example of the trade curbs in 2010, which led Japanese policymakers to take precautions against such risks in the future.

The other scenario is a potential economic slowdown rather than a policy decision by Beijing, which could lead to a reduction in Chinese exports to Japan, according to Hinata-Yamaguchi.

“The only concern that I can see is that manufacturing in Japan is not cheap, in contrast to costs in China. But this does come back to economic security. If Japan is over-dependent on imports from elsewhere, that has to be a worry.”

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China curbs ‘excessive’ law enforcement in quest to quell private sector doubts

https://www.scmp.com/economy/china-economy/article/3281899/china-curbs-excessive-law-enforcement-quest-quell-private-sector-doubts?utm_source=rss_feed

China is cracking down on behaviours from law enforcement seen as detrimental to the ordinary function of private businesses, a crucial step in restoring confidence as the country embarks on a whole-of-government effort to ensure a steady, sustainable economic recovery.

Jurisdiction-breaking trips by officers to detain suspects, arbitrary fines and disparities in the punishments meted out to private and public entities have all been areas of frustration for China’s enterprises.

As Beijing attempts to rally the private sector to reverse an economic slump, analysts said, entrepreneurs are expecting action to go along with words before they consider rekindling their faith.

But those words are still being spoken – and louder than ever. In a Tuesday meeting on the economy, Premier Li Qiang told an assemblage of business leaders that Beijing would “resolutely root out” persistent problems like fines, inspections and forced closures to guarantee peace of mind.

“The key to stabilising the economy is to stabilise enterprises,” Li was quoted by state news agency Xinhua as saying. “We must do a good job in helping them tide over difficulties and ensure they can benefit from policies.”

On the same day, the National Development and Reform Commission (NDRC) – China’s top economic planner and an overseer of the private sector – pledged to improve the situation at a widely watched press conference.

“We shall adopt a more inclusive, prudent and flexible approach … and rein in excessive ‘cross-region’ enforcement,” said NDRC chairman Zheng Shanjie. “We must not capriciously impose fines, conduct blitz checks or seal up facilities.”

Localities with abnormal rises in fines and seizures, he added, would be subject to investigation by the commission.

In a surprise meeting at the end of September, the Communist Party’s Politburo reaffirmed the need for a dedicated law to protect and nurture the private economy.

Beijing is looking to its private sector as it strives to reach its annual economic growth target of “around 5 per cent”, but that achievement remains elusive as weak consumption figures, a faltering property market and numerous challenging externalities threaten to throw matters off track.

Per the country’s National Bureau of Statistics, the private sector contributed to half of China’s total tax revenue, 60 per cent of gross domestic product and 80 per cent of urban employment in 2023.

“Entrepreneurs have guarded expectations following the latest assurances, but they know from past experience it takes time for words to be put into action,” said Fu Weigang, executive president of the Shanghai Institute of Finance and Law think tank.

“One way to deter some cadres and instantly restore business sentiment is to make swift, high-profile rectifications, punishing officials to amplify the pro-business message.”

Cases of “cross-region” enforcement, where unscrupulous actors travel beyond their jurisdictions to detain people and collect fines, have been pervasive enough to be colloquially likened to fishermen trawling in offshore waters.

In a reflection of the scope of the problem, a clause in a draft law on the promotion of the private economy calls for coordination and uniform standards when a case crosses regional borders.

“If a case requires law enforcement in a different place,” the draft reads, “statutory powers, conditions and procedures shall be observed.” The latest version of the law has been released by the NDRC and Ministry of Justice to solicit public opinion.

Such cases have been on the rise in recent years, as the finances of many local governments have fallen under strain. National tax revenue dropped 5.6 per cent year on year in the first half of 2024, but non-tax income – mainly fines – rose 11.7 per cent to 2.18 trillion yuan (US$308.2 billion).

Provinces such as Zhejiang, Jiangsu and Guangdong, known for their thriving private economies, have frequently been on the receiving end.

Shenzhen, a major urban artery in Guangdong province, made assurances last year to protect its businesses from this practice.

In a document issued in October 2023, the government of Shenzhen said it would protect the “legitimate interests” of private firms in cases involving law enforcement from outside the locality.

“We will standardise enforcement cooperation procedures with other localities that send personnel to Shenzhen and establish an emergency coordination mechanism for private businesses,” read the document, “and minimise the impact on their operations.”

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China unpacking economic stimulus in steps to avoid ‘overleveraged’ response: economist

https://www.scmp.com/economy/global-economy/article/3281873/china-unpacking-economic-stimulus-steps-avoid-overleveraged-response-economist?utm_source=rss_feed

China may announce economic revival measures in steps rather than as a “huge stimulus package” to avoid overheating the markets, but fast enough to ease property sector pains, a regional economist said on Thursday.

Monetary stimulus from last month and any fiscal measures that follow will form parts in a series of moves that began last year, said Hoe Ee Khor, chief economist with the Singapore-based Asean+3 Macroeconomic Research Office (Amro).

Measures that could emerge from a Ministry of Finance briefing scheduled for Saturday might continue that roll-out, said the economist who follows China, Japan, South Korea and the 10-country Association of Southeast Asian Nations (Asean) region.

“We don’t know how big the measures will be, but one thing is certain, they are not going to announce a huge stimulus package as they did in 2009,” Khor said.

That package, he said, had sparked an “overleveraged” response in the markets. Overleveraging means borrowing too much money and being unable to pay it all back.

China’s State Council released a 4 trillion yuan stimulus package (US$559 billion) in 2008 and the following year to cushion the impact from the global financial crisis and it is credited with helping economic growth recover to double digits by mid-2009.

However, the stimulus also built up trillions of yuan worth of debt within local government financing vehicles (LGFVs) and accelerated “shadow banking”, which refers to unregulated financial activity.

LGFVs were created to aid off-budget financing, especially for infrastructure spending, but weak disclosure requirements have led to concerns about so-called hidden debt risks.

Khor linked the monetary stimulus announced in late September to other economic revitalisation measures announced since the Communist Party Central Committee’s plenary session in July.

The People’s Bank of China began making a net 100 billion yuan (US$14.1 billion) bond purchase from secondary the market in August, before it acquired another 200 billion yuan last month.

And following its larger than expected rate cut announced at the end of September, the central bank on Thursday also launched a 500 billion yuan swap tool to boost stock market liquidity.

Last month, officials also sought to mobilise government departments to do their part in bucking up the world’s second-largest economy.

Upcoming stimulus measures, even if short of a huge windfall, would “be enough to revive the economy” by stimulating domestic demand and quickening the pace of recovery for the Chinese property market that has struggled since 2020, Khor said.

Amro’s Asean+3 Financial Stability Report, released on Thursday, voiced caution about “highly leveraged Chinese developers”.

Hit by a tightening of regulations in Beijing, default cases among major real estate developers rose in 2021 before peaking a year later, the report said.

The number of defaults stabilised after that, it said, but property prices have been declining since 2022 based on data from 70 cities.

Price falls are “exacerbated by oversupply” plus doubts among homebuyers about the “delivery of pre-purchased homes”, according to the report.

Sales have also declined, making it harder for developers to raise funding, the report added, calling revenue from home presales “a key source of financing for developers”.

Defaults on offshore bonds issued by Chinese developers have also declined since a 2022 peak, it said, but Chinese developers “remain under scrutiny”.

Khor said China and its Asian neighbours should monitor the impact from the US presidential election until the end of the year should former president Donald Trump win another term.

A victory for Trump would generate “uncertainty” especially if he added tariffs against Chinese imports, Khor added.

He suggested that the Asean bloc hang together as a “connector” between the two powers because that approach had helped Southeast Asia “manage” in the past.

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Donald Trump doubles down on China carmakers being unwelcome in US market

https://www.scmp.com/news/china/politics/article/3281934/donald-trump-doubles-down-china-carmakers-being-unwelcome-us-market?utm_source=rss_feed

Republican presidential candidate Donald Trump on Thursday said he would take steps to prevent Chinese carmakers from selling vehicles in the US as part of his plan to save the American auto industry.

“They’re going to pay a 100 per cent or maybe even a 200 per cent tariff because we’re not going to let them come into our country and destroy what’s left of our auto industry”, Trump said, addressing the Detroit Economic Club in the manufacturing state of Michigan.

Trump was referring to Chinese cars potentially being made in Mexico and shipped stateside tax-free under the United States–Mexico–Canada Agreement (USMCA).

Chinese auto companies have been rumoured to be scouting for production facilities in Mexico, although major mainland electric-vehicle maker BYD said it would pause such plans until after America’s presidential election in November.

Trump on Thursday said he would formally notify Canada and Mexico of his intention to renegotiate the USMCA – currently slated for review in 2026 – to address concerns about Chinese vehicles.

The former president also proposed making interest on car loans fully tax-deductible, saying this would “stimulate massive domestic auto production” and “make car ownership dramatically more affordable” for millions of Americans.

In addition, Trump reiterated his invitation to foreign companies to manufacture products in the US, touting his “Made-in-America” plan to lower the corporate tax rate from 21 to 15 per cent.

“US-based car makers and manufacturers will also be rewarded with expanded research and development tax credits, very substantial, where they will be able to write off 100 per cent of their cost of heavy machinery and other equipment necessary to build a plant in the first year, and full expensing for manufacturing investments,” he said.

Previously, Trump said he would welcome Chinese carmakers to build plants in the US if they used American workers.

“We’re going to give anybody that comes in free access to the best and biggest market anywhere on the planet,” he said on Thursday, without excluding China.

Trump’s pledges on Thursday reflect the intensifying battle for crucial electoral college votes in the US Midwest.

During a September speech in Pittsburgh, Pennsylvania, another swing state, US Vice-President Kamala Harris, the Democratic presidential candidate, proposed her own tax incentives aimed at bolstering advanced manufacturing. Harris has also said she would invoke the USMCA’s renegotiation provision.

Recent polls show the two are locked in a tight race, with the outcome likely to be decided by narrow margins in battleground states like Michigan and Pennsylvania.

In a speech largely focused on economics, Trump in Detroit blasted what he called the “twin disasters” of China joining the World Trade Organization and the launch of the North American Free Trade Agreement, a free-trade deal that preceded the USMCA.

He also touted his pulling out of the Trans-Pacific Partnership in his first week in office as president; slapping tariffs on Chinese cars and steel; and negotiating the phase-one trade deal with Beijing.

Trump’s presidency ushered in a bilateral trade war that led to tariffs imposed on hundreds of billions’ worth of mainland goods. The Biden administration has kept much of the former president’s tariffs.

And last month, US President Joe Biden proposed prohibiting key Chinese hardware and software in vehicles with internet connectivity from being used on American roads, citing national-security concerns.

The move effectively bars mainland cars and trucks from the US market.

Separately, Biden also unveiled new 100 per cent tariffs on all Chinese EVs that came into effect last month.

Tech war: China sees glut of AI data centres as GPU mismatches exacerbate weak demand

https://www.scmp.com/tech/article/3281894/tech-war-china-sees-glut-ai-data-centres-gpu-mismatches-exacerbate-weak-demand?utm_source=rss_feed

China’s rush to build a nationwide network of artificial intelligence (AI) data centres is running the risk of creating an oversupply of computing power, experts and industry professionals said.

Data from CCID Consulting, a government-backed think tank focused on technology, shows that more than 250 internet data centres have either been built or are under construction in China as of June, as local governments, state-owned telecommunications network operators and private investors pour money into the “new infrastructure”.

Many of these artificial intelligence (AI) computing facilities are also located in areas far from the nation’s technology centres.

Total computing power in China reached a whopping 246 Eflops as of June this year, according to data published in September by the China Academy of Information and Communications Technology (CAICT), an institute affiliated with the Ministry of Industry and Information Technology. Eflops is a unit for measuring the speed of a computer system.

That accounted for 26 per cent of the world’s total, trailing only behind the US, according to CAICT.

However, the central processing unit (CPU) use rate of computing resources provided by privately-held servers is less than 5 per cent, according to a research report on the public cloud issued by China’s State Information Centre (SIC), a group affiliated with the National Development and Reform Commission. Experts warn of an impending glut of computing power as many data centres sit idle due to lack of demand.

“In the past few years, with the buildout of new infrastructure, some government-backed companies did build some data centres which now sit idle,” said Helen Fang, head of industrial research at HSBC. “These centres tend to not be located in or around first-tier cities, or are too small in size to meet mainstream demand.”

China’s provincial governments are rushing to support new data centres to spur the local economy, according to an employee of a mainland AI chip start-up, who declined to be named. There is little consideration given to how the data centre could operate after it is built, the person added.

Shan Zhiguang, a director at the State Information Centre, warned in April that many jurisdictions in the country are rushing to build data centres, based on the suppliers’ sales agenda instead of market demand. “The demand for computing power in China is still limited due to the lack of big models-based killer applications,” Shan said. “If built too early and too much, it may create a glut,” he told Chinese media 21st Century Business Herald.

Amid US sanctions that restrict Chinese enterprises from buying advanced chips from suppliers like Nvidia, many of these government-backed projects were given tacit orders to prioritise the use of domestic CPUs, graphics processing units (GPUs) and memory chips over foreign counterparts. That would only aggravate the situation because domestic-made hardware from various brands is more difficult to configure, especially if connected to form large computing clusters consisting more than 10,000 GPUs, according to experts.

In one example, China Mobile’s newest data centre is in Harbin, capital of northeast Heilongjiang province, and runs on 18,000 domestic-made GPUs. Separately, Jixi, a traditional coal-mining city in the province, inked a deal in May with a Hainan construction company to invest 14 billion yuan (US$1.98 billion) to build a data centre using only Chinese suppliers, including Tencent Cloud, AI chip start-up EnFlame, and Chinese chip giant Sugon.

Government-built data centres are often required to use domestic hardware and software together, according to a former manager of SenseTime who works on generative AI-related projects. Domestic GPUs are only compatible with certain models, this person said. So if a company wants to train or use foreign models it has to use Nvidia cards, not government-owned computing resources, the person added.

Asean neutrality remains key to regional peace amid US-China rivalry

https://www.scmp.com/opinion/asia-opinion/article/3281384/asean-neutrality-remains-key-regional-peace-amid-us-china-rivalry?utm_source=rss_feed

Neutrality is essential to maintaining Southeast Asia’s stability and prosperity. To uphold Asean’s centrality, the region must remain steadfast in resisting the pressure to choose sides.

As Malaysia seeks membership of Brics, the emerging economies bloc that includes Brazil, Russia, India, China and South Africa, Prime Minister Anwar Ibrahim is expected to attend the grouping’s summit in Kazan, Russia, later this month. This, plus his meeting with Russian President Vladimir Putin at the Eastern Economic Forum last month, has raised questions about Malaysia’s long-standing non-aligned stance amid great power rivalry.

Critics have warned that such a shift could undermine Malaysia’s interests. More importantly, as leaders of the Association of Southeast Asian Nations meet in Vientiane, Laos, this week, there is concern that Anwar’s stance could have broader repercussions, especially with Malaysia set to assume the Asean chairmanship next year.

But Anwar denies Malaysia has abandoned its non-alignment policy, emphasising his engagement with all global stakeholders to advance national interests. For instance, amid the US-China tech war, semiconductor companies from both the West and China have relocated operations to Malaysia. The country’s open-door policy has enabled it to maintain its trajectory of progress and development, even amid the intensifying competition.

This open-door strategy is mirrored not only in Asean but across much of the Global South. For instance, countries such as Kenya attended the China-Africa summit in Beijing last month while continuing to engage with the United States through initiatives including the Strategic Trade and Investment Partnership. By maintaining openness to collaboration with all partners, Global South nations are unlocking unprecedented opportunities for their growth and development.

In contrast, in the Global North, China’s emergence as an economic powerhouse is increasingly viewed through a zero-sum lens. The US, in particular, sees China as a systemic threat to its global dominance and is determined to contain its rise. To that end, Washington has formed groupings such as the Quadrilateral Security Dialogue (with Australia, India and Japan) and the Aukus alliance (with Australia and Britain) to counter China’s growing influence in the Asia-Pacific.

Earlier this month, in his inaugural policy speech as Japan’s prime minister, Shigeru Ishiba called for the creation of “an Asian version of Nato”, warning that failure to act could lead to a scenario where “today’s Ukraine could be tomorrow’s East Asia”.

As the US-China rivalry intensifies, Asean is under increasing pressure to align with one side, yet most member states resist this. Singapore, traditionally viewed as a US-friendly nation, recently announced its largest-ever military exercise with China – a move widely interpreted as a sign of its desire to stay neutral and avoid taking sides in the great power rivalry.

In April, a survey by the ISEAS-Yusof Ishak Institute in Singapore revealed that, for the first time, more Southeast Asians favoured alignment with China than with the US. The shift was largely attributed to the Gaza conflict, with Washington’s failure to broker a ceasefire damaging its moral standing in the region.

Despite the escalating war in the Middle East, the US remains undeterred in forging geopolitical alliances and defence treaties in the Western Pacific, ostensibly in defence of the rules-based international order.

China has undoubtedly leveraged its growing economic power to expand its influence, but, unlike the US, it has not pursued the creation of blocs that deliberately exclude other nations.

In June, Cambodia, widely regarded as China’s closest ally in Southeast Asia, agreed to resume military exercises with the US. Meanwhile, neighbouring Laos, another China-friendly state, announced plans to elevate its relationship with Japan to a comprehensive strategic partnership by next year. These developments highlight a key principle guiding Asean members: maintaining an open engagement policy.

The exception is the Philippines under President Ferdinand Marcos Jnr. Amid the escalating tension over its territorial disputes with China, Manila is aligned with Washington through military alliances and a historical mutual defence treaty.

The Philippines has previously sought support from its neighbours by proposing a separate South China Sea code of conduct with Vietnam and Malaysia. These efforts failed, as they were perceived as attempts by Manila to drive a wedge between Asean and China. Still, Philippine defence chief Gilberto Teodoro has warned that Asean could risk losing its relevance if it continued to go soft on China.

However, Malaysia’s Foreign Minister Mohamad Hasan, in a seemingly veiled criticism of the Philippines, has cautioned against any attempt by Asean members to involve external powers in resolving their issues.

Non-interference is a core principle of Asean, but when the actions of a member state jeopardise the collective well-being, legitimate concerns arise. There is growing apprehension that the Philippines could become “Asia’s Ukraine”, drawn into a larger conflict.

Unlike Ishiba’s invocation of a Ukraine parallel that frames China as the primary threat, Asean’s fear is that the US could use the Philippines as a proxy to contain China, potentially drawing Southeast Asia into the conflict as collateral damage.

Next year, as Malaysia takes on the Asean chairmanship, Anwar has pledged to uphold the association’s centrality by maintaining a neutral stance. This policy has been crucial in preserving stability and prosperity for both Malaysia and the wider region. However, intensifying great power rivalries threaten to disrupt this open-door approach. Asean must continue to resist the pressure to take sides.

By remaining impartial, the region will be better positioned to shape its destiny and maintain peace, both within Southeast Asia and globally.

Was doomed US submarine caught by a monster whirlpool in the South China Sea?

https://www.scmp.com/news/china/science/article/3281796/was-doomed-us-submarine-caught-monster-whirlpool-south-china-sea?utm_source=rss_feed

It is the stuff of science fiction. A giant whirlpool, spanning hundreds of kilometres, suddenly appears in the ocean, threatening anything in its path.

But now, after the declassification of a Chinese operation, it appears this particular whirlpool was all too real. And it could be the explanation behind an international incident involving an American nuclear-powered submarine.

In September 2021, a massive operation was launched by China to hunt and record an enormous whirlpool, more than 200km (124 miles) across, which appeared to the east of the Paracel Islands in the South China Sea.

China’s most advanced research vessel and the largest drone fleet ever assembled were sent to conduct comprehensive tracking of this vortex from the air, sea surface and under water.

Around the same time, the USS Connecticut, a Seawolf-class, nuclear-powered fast attack submarine operated by the US Navy, was also in the area.

On October 2, 2021, it hit an unknown object and had to make an emergency breach. It suffered serious damage, with repairs ongoing to this day.

A US military investigation assigned blame to the negligence of the officers and crew on board as well as their unfamiliarity with the terrain.

Now, on the third anniversary of the incident, the Chinese government has declassified its whirlpool hunting operation, with the scientific data that was collected at the time published last month in the Chinese language academic journal Scientia Sinica Terrae.

It remains uncertain whether there is a connection between the US submarine collision and the whirlpool. Scientists involved in the project refused to comment on this.

The Chinese drone fleet’s tracking operation began on September 15, 2021, and continued until September 22. When the tracking concluded, the maelstrom remained extremely powerful. Based on past experience, the scientists wrote, such phenomena “can last for weeks to months”.

The collision occurred just 10 days later on October 2. Connecticut’s hull suffered severe damage but did not completely lose power, according to the US Navy.

A satellite image taken on October 3 showed the submarine floating on the ocean surface, 42.8 nautical miles southeast of the Paracel Islands, also known as the Xisha Islands in China, sailing slowly south.

The satellite image was released by the South China Sea Strategic Situation Probing Initiative (SCSPI), a Beijing-based open-source intelligence organisation.

The submarine’s coordinates were 15.5 degrees north and 113 degrees east, according to SCSPI.

Charts in the scientific paper show that this location was still within the influence range of the swirl, around 30 nautical miles away from the sailing path of one of the Chinese unmanned vessels that had patrolled the area a few days earlier.

This type of whirlpool is also known as a mesoscale eddy. In the 1930s, American oceanographer Columbus O’Donnell Iselin first discovered and recorded this phenomenon during a voyage from New York to Bermuda.

Mesoscale eddies often appear like ghosts, containing incredible amounts of energy within them. According to an estimate by some scientists, these rotating bodies of water may carry over 90 per cent of the kinetic energy on the planet’s surface.

These disturbances in seawater can reduce the accuracy of sonar, posing a threat to the safe navigation of submarines.

They can also interfere with the propagation of electromagnetic waves within the atmosphere through air-sea interactions, leading to communication interruptions and even causing aircraft to disappear from radar screens.

Due to a lack of complete observation data, the exact causes of these eddies still remain largely unknown.

When studying the 2021 South China Sea whirlpool, the Chinese scientists discovered an exceptionally complex structure inside.

At the eddy’s centre, around 50 to 150 metres (164-492 feet) below the sea surface, the drone fleet found a high-temperature core; closer to the sea surface, they found a low-temperature core; and at a depth of 200 metres (656 feet), they discovered another high-temperature core.

A large amount of seawater rotates clockwise around these cores at a speed of around 0.4 metres per second. Although this speed may seem slow, a submarine can encounter dramatic changes in seawater temperature and density when crossing this area.

The heat difference between adjacent water bodies within the eddy, for instance, can be as high as four times, according to the data collected by the Chinese drones.

These changes are so intense and sudden that some drones, when transitioning from one water layer to another, experienced unexpected impacts and lost their data collection capabilities for a period of time.

The drone fleet also detected suspended wave guides at an altitude of around 600 metres (1968 feet) above the ocean surface. This abnormal atmospheric phenomenon can severely affect the quality of wireless communication and the normal operation of radar.

A variety of intelligent equipment was used in the operation including unmanned vessels, gliders, fixed-wing and rotary-wing drones. Among them, large fixed-wing drones were responsible for communication and coordination between the various unmanned platforms.

China’s BeiDou Satellite Network and other space infrastructures also took part in the operation.

China is currently the only country capable of tracking eddies that suddenly appear using a large number of drones. According to the paper, similar operations are expected in the future, and their scale may be even larger.

The scientists involved in the operation mainly came from the Chinese Academy of Sciences, Sun Yat-sen University, and Nanjing University of Information Science and Technology, with the latter having close ties to the military meteorological department of the People’s Liberation Army (PLA).

The Seawolf class is the most advanced nuclear attack submarine currently in service with the US Navy, renowned for its high speed, quietness and excellent environmental sensing capabilities.

The US Navy conducted an investigation into the 2021 incident and concluded that the submarine collided at an extremely high speed with an undersea mountain that did not appear on any maps. The incident was attributed to a preventable human error.

“No single action or inaction caused this mishap, but it was preventable,” an investigation report released in 2022 said.

In the wake of the collision, Commander Cameron Aljilani, his second-in-command, Lieutenant Commander Patrick Cashin, and the master chief sonar technician Cory Rodgers were removed from their posts “due to a loss of confidence”.