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• Why US elections are losing their shine for educated Chinese once drawn to the democratic process
• Singapore’s ex-PM Lee Hsien Loong says ‘unwise to write off China’ despite economic headwinds
• Is China still within striking distance of its full-year growth target?
• Brazil imposes new tariffs on imports from China in bid to fight dumping
• [Sport] Labour tiptoes nervously towards a China policy
• Students able to use Hong Kong exam results to apply to Chinese University Shenzhen campus
• China in ‘tight spot’ as Korean peninsula hostilities test ‘strategic patience’
• China keen on stable, long-term ties with Britain, Beijing’s Ding Xuexiang tells Lammy
• China to get first centrally run recycling enterprise as Xi Jinping pushes green economy
• [Sport] The Week: The Budget, a trip to China, and the US election
• Tesla’s autonomous driving roll-out in China could face delays as regulators assess tech
• Any Philippine move to build ‘permanent’ shoal structure risks China’s retaliation: report
• How some of the best wines in China are being made by women
• China’s Xi Jinping pushes hi-tech message during visit to science city in once-poor Hefei
• China retail sales hit 4-month high in September, driven by trade-ins for cars, appliances
• Ukraine war briefing: US sanctions China firms over ‘complete attack drones made for Russia’
• Chinese ‘lady killer’ gains 1 million fans in a month after sharing life as kept man in Japan
• China’s home prices see biggest drop in 9 years despite efforts to revive market
• China’s deadly ICBM, Anita Mui’s mother faces second bankruptcy: SCMP’s 7 highlights
• China posts slowest economic growth in 18 months as optimism fades over stimulus
• China GDP: economy grew by 4.6% in third quarter in blow to annual target
• China plans to cut banks’ reserve ratio in the fourth quarter: PBOC governor
• Chinese robotaxi firm Pony AI files for US IPO
• Chinese firm Nuctech wins EU tenders despite subsidies inquiry
• [Sport] Chinese economic slowdown deepens, official figures show
• Why resetting social relationships to remove distant contacts is gaining momentum in China
• Business chambers hail longer 5-year mainland China travel visa for Hong Kong expats
• China stimulus ‘should absolutely surpass’ 10 trillion yuan, government economist says
• US sends second flight of migrants back to China for repatriation

Why US elections are losing their shine for educated Chinese once drawn to the democratic process

https://www.scmp.com/news/china/politics/article/3282844/why-us-elections-are-losing-their-shine-educated-chinese-once-drawn-democratic-process?utm_source=rss_feed

The presidential race between and comes at a time of rising geopolitical tensions on multiple fronts. In the fifth of , Sylvie Zhuang examines the shift in Chinese attitudes towards American elections over the decades.

United States presidential elections and their representation of the American dream have long intrigued Mandy Huang, a Beijing-based finance worker in her 40s.

Her favourable view of the US political system continued as she worked in Beijing as an investment banker, keeping a close personal and professional eye on American political races and watching for potential implications for Chinese macroeconomics.

“I started following the US elections in the Clinton era. Back then it was like some sort of halo and I saw American capitalism was all about freedom and such,” she said. “But now I pretty much see it as the system … exploiting the world, and making the world pay for it.”

The sheen of US politics dimmed for Huang from around 2019 following then-president Donald Trump’s aggressive policies against China and his “America first” approach to international affairs.

Huang is among a sizeable group of educated Chinese who have had a significant shift in perception towards US presidential elections, and America’s political system as a whole.

Interviewees with similar views point to the rise of former president Trump, Washington’s aggressive policy towards Beijing and the internal political divide in the US as key factors.

Better access to information about US elections on the ground in China and weakening ties between Washington and Beijing also contributed to the trend, leading more Chinese intellectuals to view the US political system with scepticism.

Liu Yawei, chief editor of the Carter Centre’s US-China Perception Monitor, a platform researching China’s views on the US, said the most notable factors swaying opinion were the January 6 Capitol riot in 2021 – when Trump refused to concede to the process of peaceful and orderly transfer of power – and the US death toll from the pandemic.

He described the US election process as “a chaotic spectacle” characterised this year alone by two assassination attempts on Trump and the Democrats’ eleventh-hour candidate switch from President Joe Biden to Biden’s deputy, Kamala Harris.

“It’s all very convoluted, so I would say it’s like being in a fog or a state of confusion,” he said.

“Domestic focus on the US elections primarily revolves around who is elected, rather than how transparent or good the system is.

“The key concern is the impact of that person’s election on US-China relations.”

The US presidential election is less than 20 days away.

Beijing-based investor Huang said she now looked at the race differently than in the early 2000s when she felt positively about “the ideals of freedom and democracy”, even about local polls in the US. For example, she was convinced by the election of actor Arnold Schwarzenegger as the governor of California in 2003 that in America “an actor could also be a governor – as long as you dare to dream, you can achieve it”.

Her view on the US shifted most dramatically when Trump enacted trade policies to blockade China’s economy, which Huang said she saw as US international policy to create global unrest while benefiting its own arm dealers.

Much like Huang, a Beijing-based consultant in his 50s who goes by the name Mai Jiashi and works for a leading US consulting firm he did not want to name, said his view had shifted. He described his attitude towards US politics as changing from admiration to contempt over two decades.

“In the past, people looked up to the US, but now views have shifted to a state of contempt – even viewing the election as a joke,” said the consultant on the condition of anonymity because of his company’s media policy.

“This year’s election has become a competition of ugliness, airing each other’s dirty laundry. It is like here we go again with the assassination plots and mutual attacks – you call me a criminal, I fire back and call you a fake immigrant.”

He said he thought the US’ poor pandemic policy caused the Chinese public to reflect on what kind of political system was more conducive to a country’s development.

Research published in the journal of Proceedings of the US National Academy of Sciences supports Mai’s view. A report published in April said a widespread perception that the US government’s pandemic management was poor was partly behind a “significant decline” in favourability from 2019 to 2022.

The research – jointly conducted by researchers from Princeton, Peking University, the University of British Columbia in Canada and the Chinese Academy of Sciences – indicated that the Chinese public’s favourability score towards the US rapidly dropped from 1.2 to 0.9 on a scale between zero and three between December 2019 and July 2020 and fell further to 0.6 by October 2022. In the study, zero indicated “very unfavourable” while three was “very favourable”.

Zhao Jia, 42, a Beijing-based tech executive said she had been watching American political races since the Clinton-Bush era and used to admire aspects of US democratic elections. But this time she felt bewildered because “the issues being discussed now have become more politicised, such as immigration policy and abortion”.

She said China’s economic development over the past two decades and a narrowing gap in their respective national strength, however, were among reasons to dispel the “illusion” from the past.

He Hong, 59, an executive from a Beijing-based non-profit organisation, said the US had been “a beacon of freedom and civilisation” for his generation but it had been clouded by the division in party politics and a “not-so-helpful foreign policy”.

However, for some the US presidential election holds a vicarious interest for Chinese.

According to Sheldon Xie, 25, research fellow at a Shenzhen-based think tank, said some were watching the race at a time when political participation was impossible in China.

“An example is the recent reform on delaying retirement [in China]. People have strong reactions, but what can they really do? Without a normal civic life, when people watch the US elections, they feel a much greater sense of participation. For many Chinese, this fills a psychological void.”

Liu Yawei, whose institute hosted Chinese delegations in the 2000s to watch the US race, remembered Chinese officials having a different attitude then, sharing their impression that the US was a country governed by the rule of law.

At the time they were still gradually understanding the US political system, a process that only began after the US and China started building official ties in 1979.

In 2008, Liu observed an uptick in recognition of the US political system among Chinese when Barack Obama became the first black president in a country with a long history of racial discrimination, a moment he said was “exciting for many”.

“The recognition of the US as a democratic nation was strengthened [in China too]. If American democracy were fake, how could Obama be elected?” he said.

At that time, China and the US were further integrating aspects of their business and society, such as then president Bill Clinton signing the US-China Relations Act of 2000, Washington opening the way for Beijing’s accession to the World Trade Organization and an exponential rise in the number of Chinese students studying in the US.

The US’ ability to maintain its electoral system has also been a source of admiration.

“What is truly admirable about the US is not its electoral system, but the fact that it has managed to maintain this system for so many years, becoming the world’s oldest democracy with a written constitution,” said a Beijing-based political scientist on condition of anonymity because of his organisation’s media policy.

That candidates from different parties – such as George W. Bush and Clinton – could put the constitution above their party, was a “very rare and valuable trait of the US”, the political scientist said.

Trump’s election in 2016 was a watershed, however. The US election became a topic of discussion by the broader Chinese public.

It was also then “the damage that Trump has caused to US politics is also clear to everyone [in China]”, said Liu, of the Carter Centre.

The decline in the favourable perception of the US also coincides with the intensifying US-China rivalry of recent years. Beijing has pinned Washington as its major competitor in arenas across trade, human rights, technologies, the Taiwan issue and the South China Sea.

“The focus in China regarding the US election is not so much on how transparent or good the system is, but rather on who gets elected and how that person’s election will affect US-China relations,” Liu said.

While Chinese state media is largely restrained regarding US campaign news, there is much more US election news on Chinese social media platforms.

The volume of news about Trump – a figure perceived by many around the globe as both reckless and entertaining and seen by some as symptomatic of American decline – far exceeds that of his rival Harris on Chinese social media, which may further shape the shift in attitudes towards the US political system.

After the candidates’ debate on September 10, state news agency Xinhua published a video clip featuring the most controversial moments in the debate, including Republican candidate Trump claiming immigrants were eating people’s pets in Springfield, Ohio – an assertion repeatedly denied by local officials.

On October 16, a tag related to Trump had received more than 931,000 discussions and 2.87 billion views on Weibo, the Chinese version of X. In contrast, the Kamala Harris tag received just 27,000 discussions and 54 million views.

Weibo readership on the 2024 US election peaked on September 11, right after the presidential debate between Trump and Harris. A tag named “the Harris-Trump debate saw both participants go all out” drew a readership of more than 5 million on Weibo.

The social media tags allow a multi-strand view of US politics as it happens, perhaps contributing to how Chinese now view American-style democracy.

Zhao Jia, the Beijing-based tech executive, said the diverse channels on social media platforms contributed to Chinese taking a “more realistic look at the race”.

“Various short video platforms allow us to see the humorous side of things and also the attitudes of ordinary Americans towards the elections. Where could we previously find out how ordinary Americans engage with the electoral process?” she said.

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Singapore’s ex-PM Lee Hsien Loong says ‘unwise to write off China’ despite economic headwinds

https://www.scmp.com/week-asia/politics/article/3283003/singapores-ex-pm-lee-hsien-loong-says-unwise-write-china-despite-economic-headwinds?utm_source=rss_feed

It would be “very unwise to write off China” despite the economic headwinds Beijing is battling, Singapore’s former prime minister Lee Hsien Loong says, stressing that both the US and China share the same “danger of underestimating one another”.

Lee also said on Friday the city state welcomed Chinese entrepreneurs and businesses but warned that they must abide by local laws and integrate into Singaporean society.

The senior minister was speaking at a fireside chat at the FutureChina Global Forum on Friday evening, where he discussed China’s economy and his assessment of US-China ties, among other issues.

China’s economy rose at the slowest pace since early 2023 in the third quarter, according to official statistics, growing at 4.6 per cent in July to September which was 0.1 per cent below the pace in the previous quarter.

“There are some reasons which we can be confident that this is a country which is going to be there for a very long time,” he said. “Even the factors which hold it back, for example, the fact that its population and workforce is not growing, are not things which have to bind and to paralyse it.”

He explained that Beijing’s recent move to gradually raise the retirement age from 60 to 63 and 55 to 58 over the years, for men and women respectively, would allow for “better use of the population”.

According to Lee, China rural population, which accounts for 35 per cent of its 1.4 billion-strong population, could also be another way for the country to continue strengthening its workforce as it undergoes urbanisation.

“These are all ways in which China can continue to grow, so that’s the first reason I think we should not think that China has peaked,” he said.

The geostrategic environment had also become less favourable for China, added Lee, pointing to tensions with Europe and the US which had spilled over into the realm of economics.

“Foreign investments need more encouragement to come into China. The export markets are not as open as they used to be, so that’s another factor which influences China’s, not just the growth, but also the upgrading and transformation.”

Due to these shifts in the international arena, Beijing’s priorities have changed as well, shifting its emphasis from the economic to political, according to him.

“The government will give reassurances that they do want the private sector to have an important role. They do want entrepreneurs to have confidence but the national security considerations are important, the political considerations cannot be ignored and that has an impact [on the Chinese economy].”

Responding to a question about how Singapore decided which entrepreneurs to allow into the country, Lee said the republic was “open to everybody”, though he sent a stern warning that those who moved over should still follow its laws and integrate into society.

“For example, we may be not as poorly off as we used to be but we try very hard not to flaunt wealth, success. If you have a big car, please don’t drive it down at a high speed down Orchard Road in the middle of the night,” he said.

His comments come shortly after the government introduced a slate of new measures to strengthen its anti-money-laundering regime, following a billion-dollar case involving foreign nationals of Chinese descent which grabbed headlines when it first came to light in August 2023.

On whether the government was concerned that Chinese companies were moving to the city state to distance themselves from their Chinese roots, a trend known as “Singapore washing”, Lee said: “Nobody believes that just because a company is in Singapore, that means it is a Singapore-owned company.”

So even though TikTok has moved to Singapore and has a Singaporean chief executive officer, “everybody knows” that it falls under its parent company ByteDance, a Chinese tech giant, he added, though he pointed out that there are many companies from other parts of the world based in Singapore as well.

Lee stepped down from his position as prime minister and handed over the reins to successor Lawrence Wong in May this year.

Is China still within striking distance of its full-year growth target?

https://www.scmp.com/economy/economic-indicators/article/3282906/china-still-within-striking-distance-its-full-year-growth-target?utm_source=rss_feed

China’s economy grew by 4.6 per cent in the third quarter compared to a year earlier, with the growth rate the lowest since the middle of last year.

The gross domestic product growth figure was largely in line with the 4.58 per cent projected by economists surveyed by Chinese financial data provider Wind, and below the 4.7 per cent growth .

“While it is a marginal decline from the second quarter, it makes the official growth target of 5 per cent difficult to achieve if this trend continues to the end of the year,” said Zhang Zhiwei, president and chief economist at Pinpoint Asset Management.

Tan Junyu, a regional economist for North Asia with credit insurance company Coface, said the GDP number was consistent with a “soft patch” of domestic economic indicators over the summer.

“More specifically, the demand-side weakness has trickled down to production, which was previously supported by a recovery in exports. The lingering deflationary pressure, evidenced by the negative GDP deflator for a sixth consecutive quarter, may also prompt more businesses to slash their production,” he said.

Zichun Huang, China economist at Capital Economics, said the slowdown largely reflected a stronger base for comparison, and in seasonally adjusted quarter on quarter terms, growth recovered from a downwardly revised 0.5 per cent to 0.9 per cent.

China’s retail sales rose in September by 3.2 per cent, year on year, compared with the , hitting a four-month high.

The notable improvement in retail sales last month was attributed to the ongoing consumer goods trade-in programme, according to analysts at Goldman Sachs.

“While this remains a far cry from previous years, the uptick was nonetheless higher than we and markets expected and brings the year-to-date retail sales growth to 3.3 per cent year on year,” said Lynn Song, chief economist for Greater China at ING.

Household appliances grew by 20.5 per cent year on year, which marked the strongest year-on-year growth of any category in September, added Song.

Car sales also bounced back to 0.4 per cent year on year, “which does not appear particularly impressive at first glance, but is worth highlighting due to turning positive after being in negative growth for the prior six months,” he said.

Property investment fell by 10.1 per cent, year on year, in the first nine months of 2024 after a 10.2 per cent decline in the first eight months.

“The property market unsurprisingly remains the biggest drag on China’s growth,” added Song at ING.

And Betty Wang, lead economist at Oxford Economics, said the property sector was not showing any signs of stabilising.

“Property prices, investment, and home sales extended their downtrend in September. Demand deficiency in the household sector needs a continuous policy framework focused on improving the job market outlook, raising income levels and improving the social security net,” she said.

China’s overall fixed-asset investment grew by 3.4 per cent in the first nine months of the year, unchanged from the first eight months, while private investment fell 0.2 per cent during the January-September period.

“Fixed-asset investment growth increased modestly to growth of 3.4 per cent year on year in September from growth of 2.1 per cent year on year in August on a single month basis, on the back of faster government bond issuance in recent months, although the prolonged property downturn remains a drag,” said analysts at Goldman Sachs.

China’s industrial output grew by 5.4 per cent last month from a year earlier following a 4.5 per cent rise in August, hitting a four-month high.

“Industrial production growth rose meaningfully” last month, according to analysts at Goldman Sachs.

Hi-tech manufacturing built upon recent strength, rising to 10.1 per cent year on year, up from 8.6 per cent the previous month, according to Song at ING.

The same categories from previous months continued to drive overall manufacturing, he added, pointing to semiconductors, computers, communications, and electric equipment, and rail, ships, and aeroplanes, which “have all been consistently outperforming throughout the year”.

China’s overall urban unemployment rate stood at 5.1 per cent in September, compared with 5.3 per cent in August.

Analysts at Goldman Sachs expected China’s GDP growth to accelerate in the fourth quarter due to the recent policy easing, with their forecast for 2024 unchanged at between 4.7 to 4.9 per cent.

And Coface’s Tan said the “soft reading puts the annual growth target under pressure, as the economy will have to post a sharp quarterly rebound of about 1.5 per cent in the final quarter”.

“But the cyclical trough appears to have bottomed out with broad-based improvements across the consumption, production and investment in September,” he added.

Huang at Capital Economics, meanwhile, said China’s economic recovery remained “on shaky foundations”.

“The housing market is still in the doldrums, with sales volumes still edging down and home prices continuing to drop. Thursday’s real estate press conference unveiled few new measures, which on their own are unlikely to drive a significant turnaround in the sector and broader economic activity,” he said.

“A lot will therefore depend on the implementation of fiscal support. While the Ministry of Finance didn’t provide a specific number on the size of fiscal stimulus on Saturday’s press conference, it did commit to use existing funds to ramp up fiscal spending in the fourth quarter and hinted at an expansion of the budget deficit next year.

“This should ensure that the annual growth target is narrowly met this year and growth ticks up in the coming quarters.”

China’s GDP growth now stood at 4.8 per cent year on year through the first three quarters of the year, according to Song at ING.

“The beat in the third quarter numbers keeps China within striking distance to hit its full-year growth target of ‘around 5 per cent’ this year and requires a slightly less impressive fourth quarter growth rate than what was previously expected,” Song added.

Brazil imposes new tariffs on imports from China in bid to fight dumping

https://www.scmp.com/news/china/diplomacy/article/3283014/brazil-imposes-new-tariffs-imports-china-bid-fight-dumping?utm_source=rss_feed

Brazil has imposed new tariffs on various imports from China and other Asian nations, including iron, steel and fibre optic cable, in what officials said was an effort to combat dumping and “protect domestic industry from harm caused by this practice”.

The Executive Committee of the Foreign Trade Chamber (Gecex), composed of ministerial advisers appointed by the presidency, announced the measures on Thursday – less than a month before Chinese President Xi Jinping is scheduled to visit Rio de Janeiro to sign several trade agreements as Brazil joins China’s Belt and Road Initiative.

According to meeting minutes obtained by the South China Morning Post, the committee justified the tariffs by citing a “significant increase in imports that harmed national production”.

Most of the tariffs are temporary, lasting six months while the Ministry of Foreign Trade investigates alleged irregular trade practices.

The tariffs on Chinese imports include a 35 per cent increase on fibre optic and cables; a 25 per cent increase on iron and steel products; and a rise to 10.8 per cent from 9 per cent on sodium chlorite, a chemical compound used in pulp and paper processing.

Additional duties target metal foils, nebulisers, titanium dioxide pigments – used in paints, cosmetics and food – and polyester fibres, a key component in tyres, mesh, tarpaulins, PVC laminates and sewing thread.

The committee also instituted permanent anti-dumping measures on non-surgical gloves from China, Malaysia and Thailand. These surcharges, ranging from US$1.86 to US$33.52 per thousand units, have been applied to “tighten the noose against unfair trade and increase protection for the national industry”, according to Gecex.

More to follow

[Sport] Labour tiptoes nervously towards a China policy

https://www.bbc.com/news/articles/cx25d97jy7po

Reuters

Students able to use Hong Kong exam results to apply to Chinese University Shenzhen campus

https://www.scmp.com/news/hong-kong/education/article/3282980/students-able-use-hong-kong-exam-results-apply-chinese-university-shenzhen-campus?utm_source=rss_feed

Students in the city will have the option of applying to the Shenzhen campus of the Chinese University of Hong Kong (CUHK) by using their local results in addition to an existing pathway via mainland China’s joint entrance examination.

A spokesman said on Friday that Chinese University would join forces with other higher education institutions across the border to consider applications from Hong Kong students taking the Diploma of Secondary Education (DSE) examinations.

Admission decisions would be based on students’ exam scores and their performance in interviews. However, specific details regarding the number of available slots were still under discussion, said Cai Xiaoqiang, associate vice-president of CUHK Shenzhen.

This year marked the first time Hong Kong students were admitted to the CUHK Shenzhen campus, with 23 accepted through a specially designed “joint exam” for residents of the city, Macau and Taiwan to study in mainland universities.

Another 50 local students were studying at the CUHK campus across the border through a “double major programme”, which allows those admitted to the Hong Kong institution to get another degree from the Shenzhen side.

“The advantage of studying in Shenzhen is that we have so many companies and industries so there are plenty of internship and job opportunities,” said Xu Yangsheng, president of the CUHK Shenzhen campus since 2013.

Xu added that the Shenzhen campus provided each student with mentorship from external companies and had some majors that were not available at its Sha Tin counterpart, such as financial engineering and big data.

“Students with experience and networks both on the mainland and in Hong Kong will be competitive no matter where they land in the future,” Xu said.

In 2024, 138 mainland higher education institutions, including Tsinghua University and Peking University, admitted Hong Kong students who only had DSE scores, according to the Admission Scheme arrangement.

Zheng Yongnian, dean of CUHK Shenzhen’s school of public policy, said Hong Kong possessed strengths in fundamental scientific research and academics, but was falling behind in the commercial application of technological advancements.

The Pearl River Delta region including Shenzhen, however, had many companies and manufacturers, so cities should leverage their unique strengths for collaborative development, Zheng said.

“If a city acts independently, no one will be able to produce anything. But if there is cooperation, everyone can develop,” Zheng said.

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China in ‘tight spot’ as Korean peninsula hostilities test ‘strategic patience’

https://www.scmp.com/news/china/diplomacy/article/3282924/china-tight-spot-korean-peninsula-hostilities-test-strategic-patience?utm_source=rss_feed

With Pyongyang drumming up hostilities towards Seoul, a crisis is brewing on the Korean peninsula ahead of the US election – one that risks putting China off-balance and pushing the region to the brink of armed conflict, according to observers.

Over the past two weeks, North Korea has revised its constitution to designate Seoul as a “top enemy”, blown up inter-Korean roads on its side of the border and threatened to attack the South over alleged drone incursions.

Signalling China’s growing concerns, Beijing issued two statements this week – warning on Tuesday against “further escalation”, followed by a call on Thursday for a “political settlement” to ease tensions on the peninsula.

Ni Lexiong, a Shanghai-based military analyst, said Pyongyang’s repeated provocations had left China in an “awkward position”, especially given North Korea’s growing alignment with Russia against South Korea and the United States.

“China has tried to remain neutral … on many hotspot issues, but it is particularly difficult to do that on North Korea, which is an ally of China’s,” he said. “China, which is preoccupied with economic woes at home, apparently does not want to get into trouble, nor does it want its friends to get into trouble.”

Relations between the two Koreas started their downward slide in January, deteriorating rapidly after North Korean leader Kim Jong-un said the decades-old goal of reunification was no longer possible and Seoul was now his regime’s “principal enemy”.

Last week, North Korea accused the South of using drones to drop anti-regime propaganda leaflets on its capital, Pyongyang. Kim, reportedly incensed by the “provocative” incursions, vowed to “permanently” seal the border with the South.

The destruction of roads and rail links leading to the south followed, prompting a “counter-fire” operation by Seoul.

The Chinese foreign ministry said on Tuesday that the tensions on the peninsula were “not in the common interests of all parties”.

“The priority now is to avoid anything that may cause the tensions to further rise,” ministry spokeswoman Mao Ning said, without blaming North Korea.

After Pyongyang confirmed on Thursday that it had revised the constitution to define South Korea as “a hostile state” for the first time, Mao said China “closely follows the developments on the Korean peninsula”.

“China’s position on the Korean peninsula issue is consistent. We always believe that safeguarding peace and stability … and promoting the political settlement of the issue serves the common interests of all parties,” she said.

“It is also hoped that all parties will make constructive efforts to this end.”

Although Beijing, as Pyongyang’s main diplomatic and economic backer, has long played the North Korea card in its ties with Washington and Seoul, pundits detect little sign that China is interested in intervening in the escalating situation.

“A crisis on the Korean peninsula is just a matter of time, but great powers are all waiting for the other side to do more to stop it,” said Yun Sun, director of the China Programme and co-director of the East Asia Programme at the Stimson Centre in Washington.

“Both US and China are having a policy of ‘strategic patience’,” she said, adding that North Korea’s provocative brinkmanship was at least partially designed to seek US recognition of Pyongyang as a de facto nuclear-armed state.

Sun added that North Korea’s posturing was also about displaying aggressiveness towards the South. She noted that South Korean President Yoon Suk-yeol “has not been the most cooperative” towards North Korea.

According to Sun, Pyongyang “is bypassing the denuclearisation or unification questions [and] aiming for a legitimate status of nuclear power”. The timing was also calculated, with the US presidential elections less than three weeks away, she said.

“The US election is coming. North Korea has hope for more engagement if [former president Donald] Trump wins. That is another factor that dictates North Korea must get US attention.”

Trump has indicated on the campaign trail that he may renew personal ties with Kim and cut the number of US troops stationed in South Korea, while Democratic Party nominee Kamala Harris said she would not “cosy up to tyrants and dictators like Kim … who are rooting for Trump”.

Wooyeal Paik, an associate professor and deputy director with the Yonsei Institute of North Korean Studies in Seoul, said Pyongyang’s designation of anti-regime propaganda as “subversive threats” highlighted Kim’s insecurity.

“His recent strategic direction to give up ‘reunification’ and change the ‘two Koreas’ relationship from ‘one ethnic country’ to ‘two adversarial countries’ shows that he’s trying to form a different inter-Korea relationship and ensuing regional security structures to insulate North Korea from the exterior shocks, especially, the American alliance system,” he said.

Ni – who also regards Kim’s escalation of hostilities towards South Korea as driven by his fears of subversion of the regime – said the future of the Korean peninsula hinged mainly on how far North Korea wanted to escalate the crisis.

“[Kim’s] intention seems obvious – by blowing up its own railways and roads before any real conflict – that is, North Korea is unlikely to take an offensive posture in the event of a war,” Ni said.

“It amounts to an admission that North Korea is at an absolute disadvantage in terms of conventional military strength [vis-a-vis the South].”

In Ni’s view, a major conflict is unlikely at least for now, because Kim is “too smart to overreact”, given his years of experience in walking the tightrope between China and the US, as well as between China and Russia.

Nonetheless, the latest escalation had put China in a tight spot, given Beijing’s limited leverage over Pyongyang and the recent North Korea-Russian alignment, he added.

“China and Russia both have influence on North Korea, but North Korea is very close to Russia, whose influence has been increasing recently.”

According to Ni, China can do little at this stage – partly because of the distrust between Beijing and Pyongyang, but also because of the negative impact on China of the quasi-alliance between North Korea and Russia.

“And Russia certainly hopes to open up a new battlefield, even dragging China in, but I don’t think Kim is willing to be used by [Russian President Vladimir] Putin,” Ni said.

“China is in an awkward situation. It is certainly well aware of this triangular relationship and will exert its pressure privately and will not sit idle and watch the situation being manipulated by outsiders.”

China keen on stable, long-term ties with Britain, Beijing’s Ding Xuexiang tells Lammy

https://www.scmp.com/news/china/diplomacy/article/3282991/china-keen-stable-long-term-ties-britain-beijings-ding-xuexiang-tells-lammy?utm_source=rss_feed

China is ready to develop “stable and mutually beneficial” ties with Britain, Vice-Premier Ding Xuexiang told visiting Foreign Secretary David Lammy.

Lammy landed in Beijing on Friday for a two-day trip focused on “pragmatic and necessary” engagements with China, Britain’s sixth-biggest trading partner.

Ding, sixth in the Chinese official hierarchy, said the interests of China and Britain were “deeply intertwined”, state news agency Xinhua reported on Friday.

“China is willing to work with the UK, focusing on strategic and long-term objectives, to develop a stable and mutually beneficial relationship, and enhance the quality and level of practical cooperation in various fields,” Ding was quoted as saying.

According to the report, Lammy said the new government in Britain wanted to “strengthen constructive dialogue”, deepen cooperation across various fields and jointly address global challenges.

He has also met his Chinese counterpart Wang Yi.

The talks with Ding are the first face-to-face meeting with a senior Chinese leader and a cabinet member from Keir Starmer’s Labour government, which won office in a landslide in July.

Before arriving in China, Lammy said engagement with China was “pragmatic and necessary” for British and global interests.

“From stopping Russia’s illegal invasion of Ukraine to supporting a global green transition, we must speak often and candidly across both areas of contention as well as areas for cooperation in the UK’s national interest,” the British Foreign, Commonwealth and Development Office quoted him as saying.

Confirming Lammy’s trip on Thursday, Chinese foreign ministry spokeswoman Mao Ning said the visit would include “in-depth discussions” on topics raised during an August phone call between Chinese President Xi Jinping and Starmer.

Before that, the last time Xi had spoken to a British prime minister was in 2022 during a phone call with Boris Johnson.

During the August call, Xi and Starmer agreed that the two countries should build a long-term and stable relationship.

Xi added that the two nations could broaden their cooperation in fields such as finance, the green economy, artificial intelligence, and people-to-people exchanges.

In the past few years, a relationship that just a decade ago was described as in a “golden era” has soured over issues such as Hong Kong, human rights issues in Xinjiang, and spying allegations.

According to the British foreign office, Lammy will travel to Shanghai to meet British business leaders.

The office said that while there were substantial differences between the two countries, including on democratic values and freedom, Hong Kong, and Russia’s invasion of Ukraine, the two countries also held common interests such as the global green energy transition and strong economic connections.

“UK diplomatic efforts with China will be one of serious, stable and pragmatic re-engagement across the full spectrum of government, prioritising the UK’s national interests,” the office said.

In April, Lammy outlined his vision for what he said would be a more consistent foreign policy on China, criticising the previous administration’s approach as “oscillating wildly over the past 14 years”.

China to get first centrally run recycling enterprise as Xi Jinping pushes green economy

https://www.scmp.com/news/china/politics/article/3282995/china-get-first-centrally-run-recycling-enterprise-xi-jinping-pushes-green-economy?utm_source=rss_feed

China is preparing to set up its first centrally run enterprise dedicated to resource reuse and recycling, with President Xi Jinping calling for redoubled efforts to promote the green economy.

A founding ceremony for the China Resources Recycling Group was held in the northeastern city of Tianjin on Friday, according to state news agency Xinhua.

Xi, who was on an inspection trip to the southeast, could not attend in person. But in a message quoted by Xinhua, he described the company as an important step towards building a “green, low-carbon and circular economy”.

“The China Resources Recycling Group must comprehensively, accurately and totally follow the concepts of new development, and fully implement and deepen the strategy of conservation in a comprehensive manner,” Xi was quoted as saying.

He also urged it to “be steadfast about recycling, turning waste into valuable resources”, and to take a “firm stance in driving innovation, promoting openness and cooperation”, as well as strive to “smoothen the utilisation chain of recycled resources”.

Xi’s message was delivered by Vice-Premier Zhang Guoqing. He and Tianjin’s Communist Party chief Chen Miner were among senior officials present at the ceremony, Xinhua reported.

Premier Li Qiang also sent a message to mark the occasion, calling for the creation of an efficient and extensive system for the recycling of resources, equipment upgrades, and the promotion of trade-ins for consumer and household goods.

The company should help to spearhead China’s recycling sector and drive national economic growth, Li was quoted as saying by Xinhua.

Li’s comments suggest Beijing is pressing ahead with its trade-in drive for used electrical appliances and white goods, in hopes that a robust recycling trade would spur consumption and drive growth.

According to Xinhua, the new company will have several branches specialising in recycling different types of resources, including scrap metal, electronics, electric vehicle batteries, wind and solar power equipment, and plastics.

It will also support the development of the country’s overall recycling industry, particularly for small and medium-sized businesses.

Beijing has in recent years pushed for more sustainable development – including recycling and waste reduction – with top leaders frequently talking about its importance in driving economic growth.

China on Friday reported its slowest quarterly growth since lifting strict pandemic curbs early last year. The economy grew by 4.6 per cent year on year in the July-September period, still short of Beijing’s target of 5 per cent for 2024 and putting additional pressure on policymakers.

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[Sport] The Week: The Budget, a trip to China, and the US election

https://www.bbc.co.uk/programmes/p0jyn9gq[Sport] The Week: The Budget, a trip to China, and the US election

Tesla’s autonomous driving roll-out in China could face delays as regulators assess tech

https://www.scmp.com/tech/article/3282876/teslas-autonomous-driving-roll-out-china-could-face-delays-regulators-assess-tech?utm_source=rss_feed

Tesla’s plan to roll out its advanced driver-assistance package in China could face delays because of issues around mapping and data security, according to local media.

Tesla has Chinese government support for trialling some self-driving features, but a launch is hindered by the fact that no full self-driving (FSD) systems have been approved for use in the country, state-owned newspaper China Daily reported on Friday, citing industry sources. Regulatory departments are still vetting issues around self-driving technologies, data security and compliance, according to the report.

The roadblock comes six months after Tesla CEO Elon Musk, in a discussion with the country’s top policymakers, sought consent to launch robotaxis in mainland China – its second-largest market after the US – to test Tesla’s advanced driver-assistance package. China is expected to approve the request to show its openness to foreign business.

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

Tesla AI, which oversees the development of its autonomous driving software, said in September on Musk’s X social media platform that it plans to roll out FSD in Europe and China during in the first quarter next year, pending regulatory approval.

Advanced self-driving is achieved using a combination of cameras, sensors and lidar. The hardware can process large amounts of data about the surrounding environment, making it particularly sensitive in China, where the government has sought to limit outside access to information such as mapping data on national security grounds.

China’s Ministry of State Security on Wednesday accused an unnamed foreign company of conducting illegal mapping activities under the guise of intelligent driving research, triggering denials from several autonomous-driving and electric vehicle (EV) firms, including Tesla, Mobileye, Geely, Didi Chuxing and Navinfo.

Tesla commissioned qualified Chinese companies to carry out mapping activity, China Daily reported.

China and the US have been in a race to develop self-driving technologies, with both countries now home to many level-4 autonomous driving companies. This level refers to autonomous vehicles that are able to handle most driving scenarios but may require a driver to take over in some situations.

Chinese companies in this space span internet giants such as Baidu, EV makers including Xiaomi and Xpeng, and dedicated autonomous driving start-ups such as WeRide and Pony.ai. Baidu, which boasts the largest robotaxi fleets in China, has already rolled out a paid robotaxi service in Beijing and Wuhan, among other cities.

Tesla has priced its FSD feature at 64,000 yuan (US$9,000) per year in mainland China, but it cannot be purchased until it receives regulatory approval. Tesla also offers a free Autopilot feature that includes cruise control and lane changing.

Analysts expect FSD to have little impact on domestic car sales amid cutthroat competition in China’s EV market.

Any Philippine move to build ‘permanent’ shoal structure risks China’s retaliation: report

https://www.scmp.com/week-asia/politics/article/3282919/any-philippine-move-build-permanent-shoal-structure-risks-chinas-retaliation-report?utm_source=rss_feed

Any attempt by the Philippines to build a permanent structure at the Second Thomas Shoal in the coming months could lead to China blocking Manila’s plan, a new report suggests, as tensions in the South China Sea continue to escalate.

In a report assessing the risk of potential regional conflicts over the next six months, the International Crisis Group think tank says tensions could rise further in the disputed waterway, particularly within the Philippines’ 200 nautical-mile exclusive economic zone (EEZ), where confrontations between Beijing and Manila have occurred around several disputed shoals.

The report suggests the Philippines could try to build a more “permanent structure” to fortify its foothold at the Second Thomas Shoal, where its dilapidated World War II-era warship, the BRP Sierra Madre, has been grounded since 1999 and serves as its military outpost amid strong objections from China.

“In turn, Beijing could seek to prevent Manila from installing a more permanent structure, increase its activities on uninhabited islands/reefs near Second Thomas Shoal, increase its presence in the Philippines’ EEZ or prevent Manila’s energy exploration near Reed Bank,” the report says, referring to the tablemount near the Second Thomas Shoal.

Jose Manuel Romualdez, the Philippine ambassador to the United States, denied media reports in June that the country was reinforcing the marooned warship to prevent it from disintegrating.

However, observers said the Philippines might want to seize on recent diplomatic developments to strengthen its presence at the shoal, referred to as the Ayungin Shoal by Filipinos.

Matteo Piasentini, a geopolitical analyst at Geopolitica.info, said the Philippines might “exploit the relative stability” granted by the provisional arrangement between Manila and Beijing in July to allow resupply missions to the BRP Sierra Madre to go unimpeded under certain conditions. Such resupply missions were often hampered by Chinese vessels previously.

“Of course, there are challenges, first of all logistical ones, but it may be a valid option,” said Piasentini, also a lecturer at the University of the Philippines’ political science department.

Joshua Espeña, vice-president of the think tank International Development and Security Cooperation, said the Philippines could resort to building a more permanent presence at the shoal ahead of its midterm elections next year.

“The situation in the West Philippine Sea has evolved from a mere dispute between littoral states into one of China’s hegemonic spaces,” Espeña told This Week in Asia, referring to Manila’s term for an area in the South China Sea lying within its EEZ.

Citing domestic pressures, Espeña said: “The recent 2022 elections and the coming midterm elections in 2025 have made it clear that foreign policy is a hot topic.”

The Philippines must consider establishing a more permanent presence in Ayungin Shoal, yet backlash from China should be considered inevitable, Don McLain Gill, a geopolitical analyst and lecturer at De La Salle University, told This Week in Asia.

“Given the volatility of the security dynamics there, there are chances ... throughout the construction of such activities [for Manila] to face disruptions and provocations from Beijing … But that in itself should not be the determinant of how we proceed,” he said.

Chinese and American presence

China’s increasing presence in the waterway and more naval activities conducted by the United States and its allies could also contribute to an escalation in maritime tensions, the International Crisis Group report says.

Beijing could continue complicating Manila’s resupply missions to its vessels and further increase its presence around other shoals, according to the think tank’s analysis, adding that the US could reinforce its presence if Manila seeks its support for its supply missions.

“While neither side seeks a conflict, and Manila has signalled that for now, it does not intend to invoke the US-Philippines mutual defence treaty, the situation in the Philippines’ EEZ remains tense. The potential for unintended escalation exists, particularly if incidents at sea result in casualties,” the report says.

Chinese and Philippine vessels have continued to clash over the past few months, with the most serious incident resulting in a Filipino serviceman losing a thumb during an altercation with China’s coastguard in June.

Both sides traded blame this month for a collision near the Philippine-administered Thitu Island. The Philippines’ Bureau of Fisheries and Aquatic Resources accused a Chinese ship of “dangerous manoeuvres” by intentionally sideswiping and blocking the path of one of its vessels.

The report predicts that the US may deploy more military vessels and conduct air patrols to “underscore the credibility of its security guarantees, notably to the Philippines, Japan and Taiwan” as China increases its military presence in the region.

It also says US allies such as Australia, France, the UK, and Germany could step up their presence in the region.

Piasentini, however, was sceptical that European states would risk overstretching their forces and neglect nearer security flashpoints such as Ukraine and the Middle East.

Espeña noted that the Philippines should consider coordinating resources from these countries to increase patrolling in the disputed waters and create a “socialised norm of deterrence” in the long run.

Gill said such partnerships could help maintain a rules-based maritime order near key flashpoints and make up for Manila’s limited military resources.

Asean divisions

With Beijing claiming nearly the entire South China Sea, divisions could emerge among Southeast Asian countries, especially among the claimants of the disputed territory, analysts say.

“Deepening cleavages in Asean are not new and I believe that there is a consensus [among observers] that without robust reforms in its decision-making procedures, Asean’s proclaimed centrality in managing regional affairs will deteriorate further,” Piasentini said.

For instance, Malaysia’s deepening economic cooperation with China was a move to hedge the risk of US disengagement while the war in Gaza has forced Malaysian leaders to distance themselves from Washington, he added.

Vietnam has been pursuing a more calibrated US-China policy and “hiding its cards”, according to Piasentini.

“While Vietnam is moving with more prudence compared to the Philippines in their [US-China] relationship, this year we saw a convergence of interests in maritime security between Manila and Hanoi that I expect to continue and intensify,” he added.

In August, the Philippines and Vietnam proposed a memorandum on defence cooperation between the two countries, which Manila hoped would be signed by December.

Closer cooperation among Asean claimant states was crucial to counter the rise in Chinese activities in the South China Sea, Gill said.

“Some of our Southeast Asian neighbours [are beginning to realise] that Beijing’s expansionist ambitions do not discriminate against any particular state,” he said.

How some of the best wines in China are being made by women

https://www.scmp.com/news/people-culture/gender-diversity/article/3282879/how-some-best-wines-china-are-being-made-women?utm_source=rss_feed

While the global wine industry has been predominantly led by men, in China a different story is emerging.

Take Emma Gao. She is Chief Winemaker of Silver Heights in China’s Ningxia province. She is among the first Chinese women to get an oenology degree, having honed her craft after a stint in the French Bordeaux region. These days, Gao’s wines are served at Chinese state dinners.

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China’s Xi Jinping pushes hi-tech message during visit to science city in once-poor Hefei

https://www.scmp.com/news/china/politics/article/3282953/chinas-xi-jinping-pushes-hi-tech-message-during-visit-science-city-once-poor-hefei?utm_source=rss_feed

Science and technology should lead the modernisation of China, President Xi Jinping emphasised, as he gave a fresh push to innovation in the southeastern hi-tech hub of Hefei earlier this week.

“To advance modernisation in the Chinese style, science and technology must take the lead, with technological innovation being the necessary path to follow,” Xi said during a visit on Thursday to Hefei Binhu Science City, a flagship research and innovation hub in the Anhui provincial capital.

“Hi-tech development cannot be begged for; we must accelerate the realisation of high-level technological self-reliance and self-improvement,” state news agency Xinhua quoted Xi as saying during the visit, which was part of an inspection trip to the province.

Xi also urged Anhui to continue to enhance its role as a significant centre for technological innovation, a hub for emerging industries, a new high ground for reform and opening up, and as a region pursuing comprehensive green transformation in economic and social development.

Xi’s remarks come as China doubles down on technological advancements amid a strategic shift towards what it calls “new quality productive forces”, away from the previous export-oriented growth model, and a prolonged tech war with the United States, which has sought to curb China’s hi-tech access.

Hefei, once an impoverished eastern backwater, has emerged as a poster child of the new sci-tech push, transformed by local authorities into a powerhouse for innovation.

Its industrial hubs now produce high-end manufacturing, electric vehicles (EVs), LED screens, clean energy production, biotech and semiconductors.

Xi explored exhibits at Hefei Binhu Science City showcasing the province’s top technological developments since 2020.

The displays focus on innovations in new energy vehicles – such as Chinese EV maker JAC – intelligent “connected vehicles”, next-generation information technology, artificial intelligence, quantum computing and life sciences.

According to Xinhua, Xi examined displays of progress in renewable energy, intelligent connected vehicles and life sciences.

In 2020, the central government set out its new energy vehicle development plan for the next 15 years, calling for EV sales to account for one-fifth of total new car sales in China by 2025.

Anhui province has seen remarkable growth in innovation-led industries, reinforcing its status in the national manufacturing landscape, particularly in EVs, solar energy, and lithium-ion battery production.

The province now accounts for around one-fifth of China’s new energy vehicle output and a substantial part of its solar and battery production.

The province is also home to about 6,800 emerging industrial enterprises, which contributed over 60 per cent to its industrial economic growth last year.

The “Hefei model” has been hailed by both the central government and other cities as China competes with the US in hi-tech sectors.

Hefei’s proactive stance in fostering innovation has also attracted a range of start-ups and established corporations focused on hi-tech manufacturing, including EV maker Nio and tech firm Continental. Official support through funding, resources and a favourable regulatory environment has helped to create a flourishing ecosystem for businesses, particularly in clean energy technology and sophisticated manufacturing processes.

Another plus is a network of noted institutions that fuels innovation and talent.

For instance, Binhu Science City is home to renowned institutions like the University of Science and Technology of China and the Hefei University of Technology, which supply a steady, top-class talent pool.

Xi also met local researchers and entrepreneurs during his visit, highlighting the importance of speeding up technological self-reliance as a path to achieving modernisation.

Praising scientists and researchers as the “backbone” of promoting Chinese-style modernisation, Xi called upon them to bring out the “can-do” spirit, innovate boldly, and contribute to boosting China’s scientific and technological strength, according to Xinhua.

Before Hefei, Xi visited Liuchi Alley in the city of Tongcheng, where he called upon local authorities to promote and carry forward traditional Chinese culture.

The alley was created during the Qing dynasty when a scholar and his neighbour mutually agreed to reduce their land boundaries by about a metre (3 feet) each.

Calling the alley a model of neighbourly harmony and courtesy, Xi said it showed how “internal conflicts among the people should be resolved through mediation”, according to Xinhua.

China retail sales hit 4-month high in September, driven by trade-ins for cars, appliances

https://www.scmp.com/economy/economic-indicators/article/3282901/china-retail-sales-hit-4-month-high-september-driven-trade-ins-cars-appliances?utm_source=rss_feed

Retail sales in the world’s largest consumer market hit a four-month high in September, largely on the back of a government trade-in programme that incentivises purchases of cars and appliances, according to analysts.

China’s retail sales last month grew 3.2 per cent after a 2.1 per cent lift in August, both year-on-year comparisons, the National Bureau of Statistics (NBS) said on Friday. Month to month, retailing was also up 0.4 per cent in September over August sales.

The Chinese economy has been battered by a property crisis since 2020 and post-pandemic employment setbacks. Consumer confidence weakened slightly in August versus July.

Last month, retail sales of automobiles shifted from negative to positive with a gain of 0.4 per cent, the NBS said. Sales of household appliances and audiovisual equipment rose by 20.5 per cent in September, it added. That figure marked the strongest year-on-year growth of any category last month, ING said in a research note.

“The sales of automobiles and household appliances witnessed good momentum,” the NBS said in a statement on Friday.

The old-for-new trade-in programme, in place since March, “provided an initial boost” to auto sales in September, Coface Greater China Services regional economist Junyu Tan said in a research note.

A lift in consumer spending across industries would take more fiscal support to expand the trade-in programme, Tan said.

The programme for appliances and even property began in March with support from about 300 billion yuan (US$42 billion) in special government bond funds. The government decided in August to increase subsidy standards for automotive trade-ins.

Goldman Sachs also attributed last month’s retail-sales growth to the “ongoing consumer goods trade-in programme”.

Beijing is gradually rolling out a stimulus package that began with larger-than-expected monetary easing in September.

Historically low consumer sentiment, coupled with a persistent property crisis, is likely to keep consumption growth in the single digits, a senior partner with management consulting firm McKinsey & Company’s Shenzhen office said in a September report.

Those pressures may linger for 12 to 18 months, said the partner, Daniel Zipser.

But he pointed nonetheless to “pockets of consumer confidence”.

Chinese overseas luxury spending in May was 32 per cent higher than the level in 2019, followed by 22 per cent growth in June, Zipser said. Services and tourism, he added, have been experiencing robust growth, meaning the economy is not “in uniform decline”.

“This trend suggests that Chinese consumers have not lost their desire for luxury goods,” Zipser said. “Foreign brands continue to hold significant appeal among Chinese consumers, particularly in the premium and luxury segments.”

European companies are shoring up their investments in China, though some lower-performing companies have indeed scaled back operations, he said. And in sportswear, foreign brands, including those operated by Chinese partners, have gained “substantial” market share post-pandemic, he added.

But consumer confidence remains at “dire” levels because falling property prices have hurt household wealth while “shaky” job prospects encourage people to save, said Harry Murphy Cruise, an assistant director and economist at Moody’s Analytics.

Retail sales gained 3.3 per cent, year on year, in the first nine months of 2024 to 33.36 billion yuan, the NBS said. That percentage came in below a 5.8 per cent industrial production increase and 7.7 per cent growth in fixed-asset investments excluding real estate, Murphy Cruise said.

“That gap needs to be closed for China to find its footing and drive sustainable growth,” he said.

Ukraine war briefing: US sanctions China firms over ‘complete attack drones made for Russia’

https://www.theguardian.com/world/2024/oct/18/ukraine-war-briefing-us-sanctions-china-firms-over-complete-attack-drones-made-for-russia

• The US has unveiled its first ever sanctions against China-based companies for “directly developing and producing complete weapons systems in partnership with Russian firms” for use in Ukraine. The sanctions are for the alleged production of drones that Russia has deployed in its war against Ukraine, according to the US Treasury. Matthew Miller, spokesperson for the US state department, claimed: “This was the first time we actually saw a Chinese company manufacturing a weapon itself that then was used on the battlefield by Russia.”

• The action relates to the Garpiya series long-range attack drone. The Treasury said the drone was “designed and developed by” China-based experts, and produced at Chinese factories in collaboration with Russian defence firms, then transferred to Russia for use against Ukraine. The two China-based companies sanctioned are Xiamen Limbach Aircraft Engine Co and Redlepus Vector Industry Shenzhen Co. Also targeted are Russia-based Limited Liability Company Trading House Vector and Artem Mikhailovich Yamshchikov. Previous US sanctions have hit Chinese entities providing components to Russian firms to make weapons.

• Volodymyr Zelenskyy urged European leaders to issue an “immediate invitation” for Ukraine to join Nato as he pitched the “victory plan” that he said would end the war in 2025 at the latest. At EU leaders’ Brussels summit, Ukraine’s president outlined his five-point plan, which urges allies to lift restrictions on the use of long-range weapons on military targets inside Ukraine’s occupied territories and Russia, as well as to help increase air defences. An immediate invitation to join Nato, albeit with membership later, is widely seen as unrealistic in the transatlantic alliance, Jennifer Rankin reports from Brussels.

• Zelenskyy claimed on Thursday to have intelligence that Russia is preparing to deploy 10,000 North Korean soldiers in the war against Kyiv, as he called it “the first step to a world war”. Western officials said they were aware of the reports but treating them with caution, the AFP news agency said. One official cited reports of between 2,000 and 12,000 North Koreans, but if verified “it’s probably towards the lower number”.

• Norway will supply six F-16 jets to Ukraine “in the near future”, the Ukrainian defence minister Rustem Umerov, said on Thursday after talks with his Norwegian counterpart, Bjoern Arild Gram.

• An artillery ammunition drive spearheaded by the Czech Republic for Ukraine must continue into 2025, the Czech, Danish and Dutch prime ministers have declared. The scheme is set to hand Ukraine 500,000 shells this year. Eighteen countries including Canada, Germany and Portugal have signed up to help. The drive makes up in part for the EU’s failure to meet its promise to supply one million shells to Ukraine by the end of March this year. Ukraine’s western allies are competing with Russia for the purchase of ammunition in markets outside Europe.

• Dozens of countries committed on Thursday to help clear Ukraine of massive amounts of mines and explosives, which contaminate nearly a quarter of its territory. During a two-day conference in Switzerland, more than 40 countries backed the Lausanne Call for Action, the organisers said. The World Bank has estimated that demining Ukraine will cost around US$37bn.

Chinese ‘lady killer’ gains 1 million fans in a month after sharing life as kept man in Japan

https://www.scmp.com/news/people-culture/trending-china/article/3282253/chinese-lady-killer-gains-1-million-fans-month-after-sharing-life-kept-man-japan?utm_source=rss_feed

A Chinese man, known online as “Sudden Fantasy” and nicknamed “a lady killer”, has captured significant attention by sharing how he completely relies on his Japanese wife financially, amassing over 1 million followers on Douyin in just a month.

The man, whose age remains undisclosed, has lived in Japan for eight years and garnered a following of 1.4 million by sharing his experiences as a “kept man”.

Sudden Fantasy describes himself as an ordinary man from Beijing, but his wife, whose Chinese name is Fenghua, is not only well-educated and employed but also hails from a wealthy Japanese family. Her mother has travelled extensively around the world.

Initially, he did not consider pursuing a romantic relationship with her due to his financial struggles. However, during a particularly low point in his life – when he could barely afford daily meals – Fenghua offered her support by bringing him food and later contributed to his tuition fees.

After dating for two and a half years, the couple married.

In traditional Japanese society, men are usually the primary breadwinners while women focus on household duties; however, his story reverses this norm.

Earlier this year, he quit his job and fully embraced life as a “kept man”, allowing him to spend his days playing video games at home while his wife covered all household expenses. The details of his previous occupation were not disclosed.

His wife even arranged a jar containing 260,000 yen (US$1,740) to cover his daily expenses. He states he cannot repay her because it would make her cry.

He quickly gained over 1 million followers in just 30 days, according to Newrank.cn, a Chinese social media evaluation and big data analytics platform.

One key reason for his popularity is that his videos authentically depict the life of a kept man while providing thoughtful commentary on mutual support and understanding within a relationship.

For instance, he revealed that despite waking up at 7am on Sunday, he stays in bed until his wife awakens at noon and then accompanies her while she scrolls through her phone until 3pm.

He explains that getting up earlier might make his wife feel anxious about staying in bed, so he chooses to remain with her to support her relaxation.

When his wife does household chores, he keeps her company, even though he does not actively assist her.

“I’m like a vulture hovering around, keeping an eye on her. There aren’t many clothes to hang, but letting her do it all alone would make her resentful,” he shared, explaining that by staying close she can call on him whenever she needs.

He also prioritises her comfort by allowing her to shower first, preventing her from stepping onto a cold, damp bathroom floor.

“You have no idea how uncomfortable it is to step on cold tiles after a long workday. A good mood can be ruined instantly. So, I make sure the bathroom is dry before she uses it.”

He emphasises that the ultimate philosophy of being a proper kept man extends beyond merely doing things for one another; it is about finding ways to mutually enhance each other’s lives.

“You will not last long if you’re just doing things to be nice to her; you’ll eventually burn out. Willpower is limited. You need to discover a way for both of you to live together harmoniously; what I do is not just for her, but also for me. That is my ultimate philosophy as a kept man.”

His videos are viewed as insightful lessons filled with practical advice, resonating widely with both men and women.

One viewer commented: “This isn’t about being a kept man – it’s about respecting women, being considerate, and demonstrating emotional intelligence.”

Another added: “Bro, you truly understand women. You’ve highlighted aspects I’ve sensed but never discussed with my partner. I think most guys do not get this.”

A third humorously noted: “It’s like paying for one person’s meals but getting a nanny and an emotionally supportive partner in return. Honestly, it’s not a bad deal – I want one too!”

China’s home prices see biggest drop in 9 years despite efforts to revive market

https://www.scmp.com/business/china-business/article/3282858/chinas-home-prices-see-biggest-drop-9-years-despite-efforts-revive-market?utm_source=rss_feed

China’s home prices fell by the most in nine years in September, extending a decline for the 16th consecutive month and underscoring the challenges to revive the sector despite a top government official saying that the market has started to “bottom out” following a slew of supportive measures.

New home prices dropped 6.1 per cent across 70 mainland cities from a year earlier, the biggest decline since May 2015. The decline expanded from a 5.7 per cent slump in August, according to data from the National Bureau of Statistics (NBS) on Friday.

New home prices in the four tier-1 cities – Beijing, Shanghai, Guangzhou and Shenzhen – fell 0.5 per cent month on month in September, following a 0.3 per cent decline in August, the data showed. Tier-2 cities such as Tianjin, Wuhan and Chengdu, and tier-3 cities such as Dali, Xuzhou and Huizhou saw a 0.7 per cent drop last month, compared with 0.6 per cent in August.

Prices of second-hand homes fell 1.2 per cent on average in September in Beijing, Shanghai, Guangzhou and Shenzhen, widening by 0.3 percentage points from August, according to the data. Prices fell 0.9 per cent in tier-2 and tier-3 cities, contracting by 1 percentage point month on month.

“The housing market is experiencing a deep adjustment, as a ‘bottom’ is being formed gradually through three years of overcorrection,” said Yan Yuejin, vice-president of Shanghai-based E-House China Real Estate Research Institute.

Once a growth engine powering a quarter of China’s gross domestic product (GDP), has now become a drag on the economy since a nationwide campaign began in late 2020 to deleverage developers and rein in debt. China’s GDP grew 4.6 per cent for the third quarter from a year ago, worsening from the 4.7 per cent growth in the second quarter, according to the official data released on Friday.

A turnaround may be about to take place and this will be reflected in the October data, said Yan, adding that housing prices will stop falling further and start stabilising.

The official data came after China announced the late last month to stimulate consumption, investment and property sales. The People’s Bank of China instructed lenders to cut mortgage rates by half a percentage point and reduce the down payment for second homes to 15 per cent from 25 per cent. That was followed by tier-1 cities relaxing home-purchase rules to spur sales.

Sentiment picked up shortly after the supportive measures, with new-home transactions over the “golden week” National Day holiday jumping 27 per cent year on year across 25 Chinese cities tracked by the China Index Academy. Local media outlets reported prospective buyers flocking to showrooms to visit sample units.

Housing Minister Ni Hong said at a media briefing on Thursday that the property market has started to “bottom out” after three years of adjustment. He also announced an increase in credit support to 4 trillion yuan (US$563 billion) by year-end for an expanded “white list” of housing projects, and plans to renovate 1 million old homes in large cities.

However, some analysts do not think property prices are going to bottom out any time soon.

“Structural changes will continue to reshape the outlook for China’s real estate market,” Ricky Tsang, analyst at S&P Global Ratings, said in a report published on Friday.

“Property sales could stabilise towards the second half of 2025, but only if the conditions are right,” said Edward Chan, analyst at S&P.

The rating agency estimates overall property sales will decline to about 8.5 trillion-9 trillion yuan in 2024, dropping further to 8 trillion-8.5 trillion yuan in 2025.

Sales at the nation’s top 100 home builders in the first nine months of the year fell 38.8 per cent from a year earlier, according to data published this month by the China Index Academy.

China’s deadly ICBM, Anita Mui’s mother faces second bankruptcy: SCMP’s 7 highlights

https://www.scmp.com/news/world/article/3282710/chinas-deadly-icbm-anita-muis-mother-faces-second-bankruptcy-scmps-7-highlights?utm_source=rss_feed

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

The story of how Chinese scientists overcame technological containment efforts by the Soviet Union and the United States to develop nuclear weapons in the 1960s has long been a textbook staple in China, but analysts caution that today’s hi-tech hurdles could be harder to surmount.

The mother of late Cantopop diva Anita Mui Yim-fong is facing the prospect of being declared bankrupt for a second time after Hong Kong’s justice minister applied to a court to have the centenarian’s assets liquidated.

A Chinese battery manufacturer’s plans to build a plant in a small village in the state of Michigan could well influence the outcome of the US presidential election that is less than a month away.

When China conducted an intercontinental ballistic missile (ICBM) test outside its airspace for the first time in 44 years last month, international attention zeroed in on advances in the country’s rocketry programme. But the People’s Liberation Army has developed an even more advanced kind of ICBM, the fourth-generation DF-41, which can go further and carry more warheads.

Indonesia is blocking the sale of Apple’s latest iPhone, citing the tech giant’s failure to comply with local content regulations aimed at boosting domestic industry – frustrating eager consumers awaiting the new device.

Chinese archaeologists have unearthed a tomb dating back some 5,000 years, which they believe is older than any similar discovery and that may belong to a prehistoric king.

Malaysian social media is abuzz with speculation, condemnation and empathy over the unusual antics of two sisters – one of whom posted photos of her licking dough at a soft pretzel chain – as their actions mystify and divide the public.

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China posts slowest economic growth in 18 months as optimism fades over stimulus

https://www.theguardian.com/world/2024/oct/18/china-economy-slow-growth-yuan

China posted its slowest growth in a year and a half on Friday, as Beijing struggles to steady an economy shaken by sluggish consumer spending and persistent property sector woes.

Officials have in recent weeks unveiled a string of measures to reignite the world’s number-two economy, with an eye to achieving its official annual growth target of 5%.

But after a blistering share market rally fuelled by hopes for a long-awaited “bazooka stimulus”, optimism has tapered as authorities refrained from providing a specific figure for the bailout or detailing any of the pledges.

On Friday, Beijing’s National Bureau of Statistics (NBS) said the economy expanded 4.6% year on year in the third quarter – down from 4.7% in the previous three months and the slowest since early 2023, when China was emerging from its strict pandemic-era lockdowns. Still, it was slightly better than the 4.5% predicted by analysts surveyed by AFP.

China’s economic growth is also being hindered by sluggish domestic spending, with consumer wariness threatening to plunge the country into deflation.

The September consumer price index – a key measure of inflation – missed expectations, speaking to continued lacklustre demand.

Recent weeks have seen authorities unveil a raft of measures to funnel cash into the economy including a string of rate cuts and loosened restrictions on home-buying.

“We are waiting for more clarity on the fiscal stimulus,” said Zhiwei Zhang, chief economist at Pinpoint Asset Management. “We may have to wait till November to find out details, as the outcome of the US election is probably one factor that influences the policy thinking in Beijing.”

Ahead of the figures, state media said China’s top banks had cut interest rates on yuan deposits for the second time this year.

Beijing says it has “full confidence” in achieving its annual growth goal, but economists say more direct fiscal stimulus is needed to revive activity and restore business confidence. Investors are clamouring for more specifics on how Beijing will shift its economy towards a consumption-driven model that can sustain long-term growth.

A major headache has been a prolonged crisis in the property sector, which has long been a key driver of growth but is now mired in debt.

On Thursday, officials said they would boost credit available for unfinished housing projects to more than US$500bn. Authorities also promised to facilitate the renovation of a million homes, a move intended to boost activity in the property sector.

But as with a slew of much-touted briefings in the past week, Thursday’s news conference failed to impress with its lack of big-ticket financial pledges. A gauge of developers tracked by Bloomberg had fallen as much as 8.3% on the day, while iron ore and steel futures also weakened.

“Let’s be honest, though – China’s property mess isn’t something that can be patched up with a few speeches and half-baked measures,” Stephen Innes, managing partner at SPI Asset Management, said in a note.

Agence France-Presse contributed to this report

China GDP: economy grew by 4.6% in third quarter in blow to annual target

https://www.scmp.com/economy/economic-indicators/article/3282827/china-gdp-economy-grew-46-third-quarter-blow-annual-target?utm_source=rss_feed

China reported the lowest quarterly growth since the middle of last year in the third quarter, moving further away from the annual growth target and putting pressure on policymakers.

The world’s second-largest economy grew by 4.6 per cent compared to a year earlier, the National Bureau of Statistics (NBS) said on Friday.

The headline gross domestic product growth figure was largely in line with the 4.58 per cent projected by economists surveyed by Chinese financial data provider Wind, and below the 4.7 per cent growth recorded in the second quarter.

Elsewhere, retail sales rose by 3.2 per cent year on year in September, compared with the 2.1 per cent growth seen in August.

China’s industrial output, meanwhile, grew by 5.4 per cent last month from a year earlier. The metric had seen a 4.5 per cent rise in August.

Overall fixed-asset investment grew by 3.4 per cent in the first nine months of the year, compared to an eight-month rise of 3.4 per cent, while private investment fell 0.2 per cent during the same period.

Property investment, meanwhile, fell by 10.1 per cent year on year in the first nine months of the year after a 10.2 per cent decline in the first eight months.

Elsewhere, China’s overall urban unemployment rate stood at 5.1 per cent in September, compared with 5.3 per cent in August.

China had set its annual economic growth target at “around 5 per cent”, but analysts have questioned if the goal is still within striking distance.

At several high-profile press conferences held since the end of September, numerous state agencies have unveiled stimulus measures intended to jolt the economy, with the Ministry of Housing and Urban-Rural Development taking its turn on Thursday.

“Generally speaking, the national economy was generally stable with steady progress in the first three quarters, and the effects of policies continued to manifest with major indicators showing positive changes recently,” said deputy NBS head Sheng Laiyun.

“However, we should be aware that the external environment is increasingly complicated and severe, and the foundation for the sound economic recovery and growth still needs to be strengthened.

“We must intensify the synergy of existing and incremental policies, advance the implementation and delivery of policies, consolidate and enhance the momentum for economic recovery and growth, so as to achieve the annual targets of economic and social development.”

More to follow …

China plans to cut banks’ reserve ratio in the fourth quarter: PBOC governor

https://www.scmp.com/economy/policy/article/3282835/china-plans-cuts-banks-reserve-ratio-fourth-quarter-pboc-governor?utm_source=rss_feed

People’s Bank of China governor Pan Gongsheng said on Friday that China’s central bank would consider further cutting commercial bank’s reserve requirement ratio (RRR) in the fourth quarter to help shore up the economy.

The PBOC plans to lower the ratio by between a quarter and half a percentage point according to the liquidity situation, Pan told the Financial Street Forum in Beijing.

The RRR is the amount of cash that commercial banks must hold as reserves.

China last lowered the RRR as part of its suite of new heavyweight policies announced at the end of September.

On Friday morning, commercial banks also announced reductions in deposit rates.

On Wednesday, the PBOC, the Financial Regulatory Bureau and the China Securities Regulatory Commission had assembled major financial institutions for a joint meeting to accelerate the implementation of the host of pro-growth measures announced since the end of September.

The meeting also discussed the call from Beijing’s top leadership’s to shore up growth.

Representatives from Agricultural Bank of China, the China Construction Bank and the China International Capital Corporation were among the attendees.

More to follow …

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Chinese robotaxi firm Pony AI files for US IPO

https://www.scmp.com/tech/big-tech/article/3282837/chinese-robotaxi-firm-pony-ai-files-us-ipo?utm_source=rss_feed

China-based autonomous driving firm Pony AI, backed by carmaker Toyota, filed for an initial public offering in the US on Thursday, in another sign of growing investor interest in new listings and easing regulatory pressures.

Activity in the IPO market has picked up pace in recent weeks, buoyed by the US Federal Reserve kicking off its highly anticipated policy-easing cycle and benchmark indexes trading near record high levels.

Pony AI, in which Japan’s Toyota owns a 13.4 per cent stake, revealed that its revenue nearly doubled to US$24.7 million in the first half of 2024. Net loss attributable to the company was US$51.3 million in the same period, compared with US$69.4 million last year.

The company said it operates a fleet of over 250 robotaxis, which have accumulated over 33.5 million kilometres of autonomous driving mileage, including over 3.9 million kilometres of driverless mileage.

The company was valued at US$8.5 billion when it raised funds in 2022. It also secured US$100 million from Saudi Arabia’s NEOM last year.

Even so, analysts and industry experts note that establishing robotaxis may still take years, primarily due to the challenges of ensuring safety and reliability. They cite accidents and the technology’s struggles to respond to situations such as inclement weather, complex intersections and unpredictable pedestrian behaviour.

The number of Chinese companies that pursued stock market flotations in the US dropped in the past few years after Beijing clamped down on offshore capital-raising in 2021. EV maker Zeekr’s debut in May was the first big listing by a Chinese company in the US since then. Earlier this month, courier delivery firm BingEx also listed on the Nasdaq.

Pony AI has applied to list on the Nasdaq stock exchange under the ticker symbol “PONY.” The company did not reveal the size of its offering.

Goldman Sachs, BofA Securities, Deutsche Bank, Huatai Securities and Tiger Brokers are the underwriters of the offering.

Chinese firm Nuctech wins EU tenders despite subsidies inquiry

https://www.scmp.com/news/china/diplomacy/article/3282836/chinese-firm-nuctech-wins-eu-tenders-despite-subsidies-inquiry?utm_source=rss_feed

Italian customs authorities will award more than €15 million (US$16.3 million) in European Union funds to Nuctech for cargo scanning equipment, even as the Chinese state-controlled company is investigated for possible violations of the bloc’s foreign subsidies regulations.

Nuctech won two tenders in September to provide scanning equipment to Italy’s Customs and Monopolies Agency, according to documents obtained by the South China Morning Post.

One contract – to supply six wheel-mounted mobile scanning systems to inspect trucks in a range of Italian ports – was awarded, with Nuctech’s bid of €11.28 million plus value-added tax well under the tender’s asking price of slightly more than €18 million. With a near-perfect evaluation score of 99.06 from the procurement authorities, it beat the second-placed bidder, the Italian arm of Britain’s Smiths Detection, which scored 96.50.

Nuctech was also awarded a second contract, this one for four mobile scanners that use “backscatter” technology – producing chalklike X-ray images of the item or person scanned – that are to be used by Italian customs offices. The company bid €4.779 million, just under the €4.82 million asking price.

EU assessments of the bids showed Nuctech out-performing rivals on its “technical offer”, which accounted for 80 per cent of the evaluation criteria and suggested that the Chinese firm committed to delivering and installing the equipment quicker. In both tenders, competitors Distek and Smiths Detection scored better on price, which was given a weighting of 20 per cent on both awards.

In both instances, the funds are to come from the European Commission’s Customs Control Equipment Instrument (CCEI) budget, a €1 billion programme adopted in 2021 that seeks to upgrade and harmonise the bloc’s customs systems.

Beijing-based Nuctech’s cost-effective model has helped it outstrip rivals to become widely used across Europe. Its scanners are present in customs operations in 25 of 27 EU member states, according to Associated Press, despite the growing concerns of policymakers.

But the awards also suggest the limits Brussels faces in trying to clamp down on what it sees as risky Chinese business operators in the EU.

For example, the commission has for years urged capitals to root out Huawei Technologies equipment from their broadband infrastructure because of security concerns, but Huawei is still widely used.

Last year, EU institutions, including the European Parliament, banned the use of Chinese-owned TikTok on official devices, also for security reasons, but lawmakers continue to flock to it. The short-video platform is so popular among MEPs that TikTok will host a training session next week for accredited aides close to the parliament, according to an invitation seen by the Post.

Nuctech also falls into this category.

Its parent company is the state-owned Tsinghua Tongfang, an entity under China National Nuclear Corporation. Hu Haifeng, son of former president Hu Jintao, was Tsinghua Tongfang’s president from 2003 to 2008, and is now vice-minister for civil affairs.

Some European authorities fear these links pose a security threat, while others believe its market position has been bolstered by unfair assistance from Beijing.

In an embarrassing twist for Brussels, the contracts were awarded while Nuctech was embroiled in a series of legal disputes about alleged subsidies from Beijing.

In dramatic dawn raids earlier this year, EU authorities entered the premises of the firm’s Dutch and Polish subsidiaries. The commission had opened a case under its powerful new foreign subsidies regulation (FSR), intending to crack down on market-distorting state handouts on the books of companies operating in the EU’s single market.

Nuctech challenged the reach of the FSR, arguing that the raids caused reputational damage. It also refused to hand over information stored in China, arguing that doing so could violate Chinese criminal laws involving data security.

In August, the EU’s second-highest court – the General Court in Luxembourg, one of the courts making up the EU’s Court of Justice – dismissed Nuctech’s arguments, ruling that a company operating in Europe must comply with local laws.

Since then, an official register of EU tenders showed that authorities in Poland and Croatia have also awarded smaller contracts to Nuctech for scanning equipment and its maintenance.

Lea Zuber, the commission’s spokeswoman for competition matters, said the FSR case was pending but it had no impact on Nuctech’s ability to compete in public tenders, or for authorities to award it contracts.

She added, however, that while member states made their own decisions on how they used CCEI funds, the commission could intervene if it determined that security risks had not been properly considered.

As geopolitical tensions soar, some EU security hawks contend that a company owned by the Chinese government should not be able to harvest sensitive information at EU air or sea ports.

Beijing’s national security laws, critics argue, could force Chinese companies to hand over any scanner data collected – potentially passenger, cargo or even military information.

“The commission, acting as granting authority, could take action in case of irregularities during the implementation of the CCEI grants projects as envisaged in the financial regulation or grant agreements,” Zuber said, pointing to a security checklist that awarding authorities should work through before selecting winning bids.

Nuctech did not respond to a request for comment, but has previously denied any data transfer to the Chinese government and said it fully complied with EU data privacy laws.

Last year, in response to a letter from 50 EU lawmakers asking her to exclude Nuctech’s scanners from the CCEI funding because of the security concerns, European Commission President Ursula von der Leyen appeared sympathetic.

“Security requirements need to be properly reflected in the procurement selection and award criteria, and … those considerations should prevail over other criteria such as price,” she wrote.

Von der Leyen said the EU’s 27 member states “should take all security, data protection, and cybersecurity aspects into consideration by already including relevant provisions in the CCEI grants documentation”, adding that the commission “provided guidance” on how to do this, according to a Politico report from March 2023.

The awarding body in Italy did not respond to questions about how it assessed those risks.

Presented with Nuctech’s contract awards, Bart Groothuis, a Dutch MEP and the author of the original letter of complaint, urged Italian authorities to reverse their decision. There is precedent for this: Belgium last year banned Nuctech’s machines from its ports, citing national security concerns.

“The extent of the ‘no problem’ attitude is baffling,” said Groothuis, who was previously the top cybersecurity official in the Netherlands.

“EU funds intended to secure our borders should not go to a Chinese military-linked company that is under investigation for unfair subsidies.”

[Sport] Chinese economic slowdown deepens, official figures show

https://www.bbc.com/news/articles/crr54x00857o

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Why resetting social relationships to remove distant contacts is gaining momentum in China

https://www.scmp.com/news/people-culture/trending-china/article/3282323/why-resetting-social-relationships-remove-distant-contacts-gaining-momentum-china?utm_source=rss_feed

A social trend of removing distant contacts and resetting social relationships has emerged among young people in China.

This phenomenon, referred to as “interpersonal relationship reset syndrome”, has gone viral in Japan and resonates with many in China.

Fatigued by the demands of maintaining extensive social networks, some individuals have opted for the drastic measure of deleting distant contacts and even their social media accounts to completely disengage from acquaintances.

According to a survey conducted by Cross Marketing, around 37 per cent of individuals aged 20 to 60 in Japan have either engaged in or contemplated an “interpersonal relationship reset”.

Dr Paul Wong Wai-ching, a clinical psychologist and associate professor at the University of Hong Kong, told the Post that young people are deleting contacts and social media accounts to forge a “new identity”.

On social media, many cite “changing social circles and jobs” as significant factors motivating their desire to clean up their digital connections.

“Resetting interpersonal relationships is like the danshari of my mental home,” a Chinese internet user remarked, referencing the viral Japanese term that refers to the systematic decluttering of one’s living space.

“It represents a fresh start for me at the new year,” said a talk show performer in China, surnamed He, who deleted more than 8,000 WeChat contacts after closing his talk show club at the start of the year.

Professor Mitsunori Ishida from the School of Culture, Media, and Society at Waseda University noted that mobile phones and social media have facilitated not only connection but also disconnection.

Wong advised young people to choose their friends wisely, especially given the prevalence of loneliness in the digital age.

“Younger individuals may accumulate numerous social acquaintances in moments of loneliness, only to feel overwhelmed by the sheer volume rather than cultivating meaningful friendships,” he explained.

Resetting social media accounts and contacts is just one among various digital detox strategies that young people are adopting.

These strategies range from switching to older phone models that prioritise basic functions such as calling, messaging, and listening to music, to altering their screen display to black and white to diminish the urge to use their phones, as well as securing their devices with apps or even timed lockboxes.

Several phone brands have launched stylish retro models aimed at young consumers.

Finnish telecommunications company Nokia released a revamped version of its classic model 3210 this year, priced at 379 yuan (US$54), which sold out within hours.

On Douban, a community-centred Chinese social media platform, two groups – Stay Away from the Screen Project and Anti-Technology Reliance – boast more than 80,000 members combined.

Participants are sharing their digital detox methods and expressing how reducing screen time has “improved their lives”.

The manager of the Stay Away group, @Luli, wrote: “We do not deny the necessity of digital screens and understand it is impossible to completely eliminate them, but we aim to achieve the small goal of consciously putting them down and reconnecting with the real world from time to time.

“Because flowers do not bloom because of screens, and grass does not flourish because of screens,” she stated.

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Business chambers hail longer 5-year mainland China travel visa for Hong Kong expats

https://www.scmp.com/news/hong-kong/hong-kong-economy/article/3282805/business-chambers-hail-longer-5-year-mainland-china-travel-visa-hong-kong-expats?utm_source=rss_feed

Foreign business chambers in Hong Kong have hailed the relaxed multi-entry visa rules for non-permanent residents in the city travelling to mainland China, saying the move made the country more appealing as a destination for global professionals while reducing administrative hassles.

Chief Executive John Lee Ka-chiu announced in his annual policy address on Wednesday that foreign employees at overseas companies registered in Hong Kong would be eligible for multi-entry visas for cross-border travel that would be valid for five years, up from the current two.

Lee said the move was intended to promote Hong Kong’s development as a base for multinationals and reinforce the city’s status as an international trading hub.

Residents travelling to the mainland for business, tourism, family visits and cultural and academic exchanges can apply for the visas, which permit stays of up to 180 days at a time.

Harley Seyedin, president of the Guangzhou-based American Chamber of Commerce in South China, said the new policy would enhance the country’s appeal as a destination for global professionals as they could more easily live in Hong Kong and work over the border.

“The availability of long-term multiple-entry visas enables foreign professionals to establish deeper connections with mainland businesses, facilitating knowledge exchange and collaboration,” Seyedin said. “This not only enriches the local workforce but also helps companies tap into diverse skill sets essential for competitiveness in a global market.”

He added the city’s Top Talent Pass Scheme had been positively received since its launch in December 2022, attracting a significant number of foreign experts and skilled professionals, creating a dynamic environment for innovation and economic growth.

The scheme has attracted more than 100,000 applications, with 81,000 approved and 66,100 individuals arriving as of September.

“With China’s new immigration rule permitting foreign residents living in Hong Kong and Macau to obtain multiple-entry visas, the benefits extend Hong Kong to the Chinese mainland,” Seyedin said.

Inaki Amate, chairman of the European Chamber of Commerce which comprises 16 countries’ lobbies, also welcomed the measure.

“We represent multiple national chambers,” Amate said. “Up until now the Chinese government has gradually eased the entry for some European citizens. But there were many other nationalities that did not benefit from those measures.”

The members of the group include the Belgium, British, Danish, Dutch, Finnish, French and Spanish chambers of commerce in Hong Kong.

“Introducing simplicity for foreign visitors to enter China is only the beginning of the measures to reactivate how Hong Kong can be repositioned as an international hub and a gateway to China,” Amate said.

Johannes Hack, president of the German Chamber of Commerce, said the policy change would reduce the hurdles non-permanent residents faced in renewing visas for the mainland.

“As part of the continuing efforts by the mainland authorities to simplify people exchanges between Hong Kong and the mainland, the German chamber welcomes the extension of the multiple entry visa to five years as it will reduce administrative burden and thereby contribute to Hong Kong’s attractiveness,” Hack said.

Josephine Orgill, chair of the Australian Chamber of Commerce in Hong Kong, said any moves that could improve access to the mainland for those based in the city were highly desirable and underlined the financial hub’s importance as a “superconnector”.

“The visa-free access to China for Australian passport holders has been working extremely well for several months now,” Orgill said. “We would really hope to see the new multi-entry cards for non-Chinese permanent residents extended to all non-Chinese Hong Kong residents.”

She was referring to a five-year permit rolled out in July allowing foreign passport holders with permanent residency to enter the mainland with self-service clearance at control points.

“This would mean anyone based in Hong Kong could benefit from the quicker and simpler access through immigration via e-gates and would be an excellent advantage,” she said.

Indian expatriate Ronak Kachalia, 36, who works as an associate director with a talent consulting and recruitment firm in Central, said the new visa arrangement was a positive sign.

“From a business point of view, I speak to a lot of mainland candidates who visit Hong Kong, so it would be good to go up there. I’m always curious to know what’s there rather than believing in social media,” said Kachalia, who has never been to the mainland.

Kachalia, who has lived in the city for 3 ½ years, said he tried to apply for a visa earlier this year but was put off by the length of time it would take.

“And for me being an Indian, it’s harder,” he said. “[The mainland] is a tourist spot, so close. I can go to Tibet as well.”

Professor Terence Chong Tai-leung, executive director of the Chinese University of Hong Kong’s Lau Chor Tak Institute of Global Economics and Finance, said the visa arrangements would attract more foreigners to set up in the city as a way to engage with the mainland.

“With the new visa arrangement, they may choose Hong Kong as a base and do not need to hire Hong Kong staff who can easily access the mainland,” Chong said. “They can go by themselves without renewing it frequently. They could be the talent that Hong Kong really needs.”

China stimulus ‘should absolutely surpass’ 10 trillion yuan, government economist says

https://www.scmp.com/economy/policy/article/3282799/china-stimulus-should-absolutely-surpass-10-trillion-yuan-government-economist-says?utm_source=rss_feed

China should take unconventional action to prevent a worst-case scenario in which the economy could “fall off a cliff”, as there are signs of a fundamental shift in Beijing’s understanding of debt and deficits as well as in policymakers’ mindset on macroeconomic risks and stimulus packages, according to a prominent economist with close ties to the finance ministry.

The comments by Liu Shangxi, head of the Chinese Academy of Fiscal Sciences, affiliated with the Ministry of Finance, came after the central leadership’s decision to implement a slew of incremental policy support measures, and amid fervent debate and speculation about the state of the economy and Beijing’s resolve in the absence of a headline-grabbing stimulus figure like what was seen in 2008.

High-profile press conferences were held successively last week by China’s top economic planner and finance ministry, but both refrained from putting an estimated value on the scale of stimulus being employed.

Asked what his estimate was for the combined value of the sweeping suite of stimulus measures – including debt relief for local-level governments, special treasury bonds and targeted actions to address the national property crisis – Liu said it “should absolutely surpass” 10 trillion yuan (US$1.4 trillion), but that it could be years before the total is fully realised.

“If you don’t take extraordinary measures [to boost domestic demand], the economy may fall off a cliff,” Liu warned in an exclusive interview with the Post on Wednesday. “It is not always a simple linear trajectory.”

Any final decision on the stimulus total, since it involves changes to budgetary plans, would require approval by China’s top legislature. And if the stimulus figure does come to light, it would only be released by the central government.

While Beijing has traditionally been cautious when it comes to debt, there have been strong signals recently to increase the central government’s debt while shifting attention to the expansion of domestic demand, said Liu, who is also a member of the Chinese People’s Political Consultative Conference, the country’s top political advisory body.

Compared with its prudent work style in the past, Beijing is undergoing a shift in policy mindset as it struggles to revive the world’s second-largest economy and meet leadership’s full-year growth target of “around 5 per cent”, Liu noted.

Speaking at a presser on Saturday, finance minister Lan Foan emphasised that there was ample room for the central government to leverage debt and raise the fiscal deficit. He also pledged a one-off, large-scale increase to the debt ceiling, so that local governments could swap their so-called hidden debts.

“They were extremely cautious on debt before, but now a turning point has come in their attitude on deficit and debt,” Liu said.

The structure of China’s government debt is shifting toward a much heavier weight in the central government’s debt, while local governments should reduce leverage, he added.

While a 3 per cent fiscal-deficit ratio was previously regarded as a warning limit in China – with an exception being last year’s 3.8 per cent ratio in the wake of the pandemic – Beijing should become more flexible based on the changing situations, he urged, likening it to the treatment of an illness.

“If you are sick, you have to take medicine, and even at high doses” when it is particularly severe, he said. “And when you get well, you stop the medicine.”

Policymakers are also showing a change in how they view macro risks, the government adviser said.

“Only when the economy is revitalised can the risk be truly reduced,” he said.

China has compelling reasons to go big in its moves to bolster the economy, including great room to increase its debt level when compared with some advanced economies, Liu said.

Even when factoring in the hidden liabilities among local governments, he estimated that China’s current ratio of debt to GDP is around 100 per cent. In comparison, the debt-to-GDP ratio is about 130 per cent in the United States and 260 per cent in Japan.

China is also facing an extended and rare stretch of a negative difference in nominal minus real GDP – a trend that signifies deflation and points to more breathing room for policy efforts, Liu added.

“This inverted growth rate is abnormal,” he explained. “This gap represents the space for your policy to take effect. The bigger the gap, the more room there is for it to take effect.”

Liu also warned about the risk of a fourth-quarter plunge in China’s economic growth, pointing to on-the-ground parameters, including the struggles of small and medium-sized enterprises, the financial losses of listed firms, and a situation in which exporters are seeing higher revenues but lower profits.

While China spent years reforming the supply side to tackle industrial overcapacity that was induced by the 4 trillion yuan stimulus package in 2008, the focus should now be on expanding domestic demand, Liu said.

He also expressed doubt that a nationwide consumption-voucher programme might be utilised, suggesting that such handouts would do little to boost spending considering Chinese people’s traditional preference for saving money, especially at a time when income expectations are weak.

Instead, he suggested, the government should allocate considerable funds to support China’s ongoing urbanisation process, as hundreds of millions of migrant workers are demanding equal access to public services and urban homes.

And Liu insisted that it is unlikely China will mirror Japan’s experience following the burst of its property bubble 30 years ago, as “China has a large number of people turning into urban residents”.

Official figures show that, as of the end of last year, slightly more than 66 per cent of China’s 1.4 billion people lived in urban areas, but only 48.3 per cent had an urban hukou – a household registration document all Chinese citizens must have that controls access to public services based on the birthplace of the holder. Migrant workers hold hukou from their hometowns, meaning they have limited rights to public services in any other city that they move to for work. END PRINT CUT

The prominent government economist also called on the central bank to embrace more treasury-bond purchases, a rarely used monetary tool in China that has triggered hot debate since coming to the public’s attention in March.

The door “must be opened wider” in this regard, as what happens in many market economies, he said.

Deeming such purchases a means of helping manage the bond market and stabilise the economy, Liu said people should change their old way of thinking and stop worrying about the possibility of inflation.

“Issuing more currency may lead to inflation, but it does not necessarily lead to inflation,” he said, warning about the deflationary pressure faced by the world’s second-largest economy.

The People’s Bank of China started buying 100 billion yuan of government bonds from the secondary market in August – the first such monetary operation in nearly two decades. Then it bought an additional 200 billion yuan last month.

Earlier this month, the bank and finance ministry held their first joint working-group meeting on the treasury bond trade, vowing to provide an “appropriate environment” for government bond trade.

US sends second flight of migrants back to China for repatriation

https://www.scmp.com/news/china/diplomacy/article/3282818/us-sends-second-flight-migrants-back-china-repatriation?utm_source=rss_feed

The US has conducted a second large flight to China, an effort it said demonstrated its “continued commitment to pursuing sustained cooperation” with Beijing on reducing undocumented migration.

The US Department of Homeland Security (DHS) did not disclose how many deportees were aboard the flight, which departed on Tuesday, but said it was the second removal of Chinese nationals from the US this year. The department did not disclose where the flight took off from or where in China it would land.

The latest flight took place three weeks before the US presidential election pitting Vice-President Kamala Harris against former president Donald Trump, in which immigration and border policy has played a large role.

In July, the first large flight since 2018 was conducted, which the DHS said was carried out in close coordination with China’s National Immigration Administration. The department later confirmed 116 Chinese nationals were aboard that flight.

“Intending migrants should not believe the lies of smugglers – Chinese nationals without a legal basis to remain in the United States are subject to swift removal,” Homeland Security Secretary Alejandro Mayorkas said on Thursday.

“The Department of Homeland Security will continue to strengthen consequences for individuals unlawfully entering our country and enforce our nation’s laws.”

As the election approaches, immigration has increasingly been a major issue for the White House. In June, US President Joe Biden issued a proclamation imposing a crackdown on migrants unlawfully crossing at the southern border, temporarily suspending their entry and limiting asylum eligibility.

In the three months following Biden’s proclamation, the DHS said it had operated nearly 400 international repatriation flights through the end of August to more than 140 countries, including China.

Beijing and Washington resumed cooperation on migration issues earlier this year. In May, the Chinese embassy in Washington said that Beijing “firmly opposed all forms of illegal immigration” and that it was “open to cooperation with the US on repatriation of illegal immigrants”.

In a separate statement on Thursday, China’s National Immigration Administration said it had worked with the law enforcement authorities of relevant countries, “including the US” and made “positive progress” in jointly cracking down on “smuggling and other serious illegal and criminal activities”.

China would continue to “strengthen international immigration law enforcement cooperation, and work with the countries concerned to address the challenges posed by cross-border illegal and criminal activities such as smuggling”, it added.

Since China lifted its strict Covid-19 border controls in January 2023, a growing number of Chinese migrants have sought to enter the US through its southern border with Mexico.

According to US Customs and Border Protection, more than 21,000 Chinese nationals were apprehended at the southern border from January to August this year. Last year, a total of 24,278 Chinese nationals were apprehended at the border.

Many choose Ecuador as a gateway – until July, the South American country allowed visa-free entry for Chinese nationals – before trekking north through Central America to the Mexico-US border.

Also in July, the US signed an agreement with Panama to halt crossings through the Darien Gap, a 60-mile stretch of dense rainforest and mountains on the country’s border with Colombia that has become another popular, if dangerous, route for Chinese nationals to reach the US.