Mistral点评

• Further curbs on tech, military exports to China leave US businesses dazed
• Despite China’s stimulus, IMF lowers GDP forecast on property, consumer confidence
• Indonesians conflicted about China, see it as closest ally and biggest threat: survey
• Why US election winner might find North Korea its ‘most dangerous flashpoint’ with China
• China and Russia at Brics summit vow stronger cooperation for ‘fair world order’
• Russia, China and Iran could stoke post-election violence, US intelligence says
• German Volkswagen executive Jochen Sengpiehl expelled from China over positive drug test
• China-led study that restarted pig’s brain offers hope for heart attack treatment
• Tech war: ASML CEO sees US pressure building for more China semiconductor restrictions
• China eyes ‘top-tier industrial workforce’ by 2035, vows hi-tech training, talent support
• China’s financial reforms an invitation for foreign firms to boost growth: BOC chairman
• China KOL with 20 million fans accused of sending team to assault man over food claims
• Xi Jinping makes economic-centric instructions to spur China’s growth
• Tim Cook makes low-key visit to China as Apple Intelligence roll-out remains uncertain
• More than 60% of Chinese over 60 are empty nesters, survey finds
• India’s bid to cash in on US-China trade war fizzles as Vietnam makes hay
• Envoy says US tech restrictions against China may ‘plunge the world into the abyss’
• China’s central bank moves to jolt stock market with 50-billion-yuan swap operation
• China holds live-fire drills opposite Taiwan, a week after large-scale exercise
• A look at how Philippines-China’s round-table discussion manages ‘lost in translation’ ties
• Waiting for Trump? How EU’s China policy anticipates his return to the White House
• Wine lovers at Hong Kong food and drink festival to enjoy wider selection from mainland China
• China shipbuilder shores up yuan’s use in trade via landmark containership deal
• China auto company VP faces backlash after video shows him eating hotpot in car
• US reacts to China-India border thaw; experts say the dispute is not over yet
• India announces deal with China on patrolling shared border, sparking hope of better ties
• US unveils new rules to block China, Russia and Iran from accessing bulk US data
• China plans live-fire drills in Taiwan Strait after US and Canada warships transit there
• US adds 6 more Chinese companies to export blacklist for boosting Iran, PLA
• US court awards Bahamas firm US$1.6 billion in case against China Construction America
• China takes bold step in turning public data into gold mine like land sales

Further curbs on tech, military exports to China leave US businesses dazed

https://www.scmp.com/economy/article/3283399/further-curbs-tech-military-exports-china-leave-us-businesses-dazed?utm_source=rss_feed

Regardless of the outcome of the United States presidential election in early November, the business community is bracing for more hardship as Washington appears poised to ramp up trade restrictions on China no matter the victor.

Notes from an annual exchange between US officials and business delegations in September, obtained by the Post earlier this month, suggested further containment will focus on four areas: the military end user rule, cloud computing, information and communications technology and the Biosecure Act.

Future actions related to the first three areas – which fall under the Bureau of Industry and Security at the Department of Commerce – would likely strengthen the regulation of military-related exports, increase scrutiny on cloud services and set new rules for the trade of critical technologies.

At the meeting, the US-China Business Council reiterated concerns over the application of new rules from the bureau covering all US nationals that would mandate a licence for any items sent to military entities overseas.

“The proposed rules are unilateral, with no equivalent in other countries,” the council said, adding that “more regulations” makes ensuring customers are not linked to military entities “an almost impossible task”.

In a notice issued on September 26, the bureau said it would be implementing an executive order to address national security risks posed by the connected vehicle supply chain.

“Washington views Beijing’s policy approach as becoming more centralised and less consensus-driven, reducing the effectiveness of traditional economic tools,” said Cameron Johnson, a senior partner at Shanghai-based consultancy firm Tidalwave Solutions.

“Washington continues to push firms to de-risk from China, including offshoring supply chains, using non-influenced supply chains, and do more ‘ABC’ – anywhere but China.”

A US government posting, issued on Monday and reported by Reuters, indicated final review is under way for new rules banning certain investments in artificial intelligence and requiring notification for outbound investments in some sensitive technologies. The timing of the release, a former treasury official was quoted as saying, suggests the restrictions are coming soon.

On the same day, the Department of Justice proposed new rules to protect federal government data and the bulk personal data of Americans from “countries of concern” – most notably China, Iran and Russia – by imposing limits on certain business transactions.

While summarising the rough road ahead for businesses with a footprint in China, the American Chamber of Commerce’s delegations from China called for “more clarity in US legislation” amid difficult conversations around national security and trade.

The business representatives also expressed a belief that “a smart trade and economic strategy” would involve lifting certain controls, particularly in light of the past four challenging years.

The Biosecure Act, which targets five Chinese medical device and life science companies, is now in the hands of the US Senate after passing in the House of Representatives. Some American firms find it limiting because of the difficulty it creates in collaboration with the affected enterprises, and the low probability of finding alternative partners.

According to the meeting notes, the US biotech industry “has been consulted” on setting up a transition period to “gradually” phase out the five companies named in the act.

“There will be an annual review to determine if companies can be removed from the list,” the notes read.

Despite recent escalations, efforts to smooth relations continue. President Xi Jinping sent a congratulatory letter to the annual gala dinner of the National Committee on US-China Relations on October 15, saying the two countries “should serve as a boost to each other’s development, rather than a hindrance”.

Xi said he hoped both countries would increase their visits and exchanges, as well as “constantly deepen” their cooperation.

At the September meetings, business leaders stressed to US officials the importance of having “more predictability, continuity and stability” during this year’s transfer of power.

“If [former president Donald] Trump is elected, he is likely to favour global tariffs, a stance not supported by Democrats. If [Vice-President Kamala] Harris is elected, she will maintain [US President Joe] Biden’s policies as a base case, though the direction could also depend on who the US Trade Representative will be,” the meeting notes read.

“Democrats are confident they can retake the House and become the majority again. Next year is expected to be focused on trade in the House, [but] Harris’s strategy in the White House is difficult to predict.”

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Despite China’s stimulus, IMF lowers GDP forecast on property, consumer confidence

https://www.scmp.com/economy/economic-indicators/article/3283403/despite-chinas-stimulus-imf-lowers-gdp-forecast-property-consumer-confidence?utm_source=rss_feed

Flagging consumer confidence and domestic property issues are set to weigh on China’s economy for the remainder of the year, according to the International Monetary Fund (IMF), prompting the Washington-based financial agency to lower its 2024 economic growth forecast.

China’s economy would grow by 4.8 per cent this year, down from its previous projection of 5 per cent in July, the IMF said in its “World Economic Outlook” on Tuesday.

The projection, although in line with Beijing’s official “around 5 per cent” target, accentuates the festering sore spots in the world’s second-largest economy despite the roll-out of stimulus measures since late September.

“Conditions for the real estate market could worsen, with further price corrections taking place amid a contraction in sales and investment.”

The outlook did acknowledge Beijing’s economic stimulus launched from late last month, a process that has included rate cuts, debt relief efforts and 2 trillion yuan (US$281 billion) in government bond issuance.

Property issues surfaced with new regulations in 2020 followed by a series of defaults among real estate developers and a decline in home prices.

“Further price drops could dent consumer confidence (which is already at historic lows) even more, further weakening household consumption,” the IMF added.

“This could cause domestic demand to falter, with negative spillovers to both advanced and emerging market economies given China’s rising footprint in global trade.”

China is embroiled in trade disputes with the likes of the United States, European Union and Canada, with much of the focus on the subsidies offered to Chinese-made electric vehicles.

“Government stimulus to counter weakness in domestic demand would place further strain on public finances,” the IMF said.

“Subsidies in certain sectors, if targeted to boost exports, could exacerbate trade tensions with China’s trading partners.”

But the IMF added that recent Chinese policy measures could provide “upside risk” to near-term growth, suggesting potential gain in value, but with uncertainty.

The outlook called the 4.8 per cent growth in China this year just a “marginal” slowdown “largely thanks to better-than-expected net exports”.

It also predicted China’s economy would grow by 4.5 per cent next year.

Many investment banks outside China have raised or maintained their 2024 economic growth projections since economic stimulus measures began emerging last month, with DBS Bank predicting 5 per cent growth.

“The upcoming stimulus will help achieve this annual target,” said Samuel Tse, an economist for group research with DBS Bank (Hong Kong).

“The positive wealth effect from the equity market will render support to consumption.”

Last week, China said its economy grew by compared to a year earlier, which was the lowest quarterly economic growth since the middle of last year.

That lifted growth to 4.8 per cent in the first three quarters of the year.

Elsewhere, the IMF raised its forecast for economic growth in the United States this year from 2.6 per cent to 2.8 per cent because of “stronger out-turns in consumption and non-residential investment”.

India should see 7 per cent gross domestic product growth this year, while Vietnam and the Philippines rank as among the fastest-growing countries in East Asia with projected growth of 6.1 per cent and 5.8 per cent, respectively, according to the IMF.

The global economy is set to expand at a “stable yet underwhelming” 3.2 per cent this year and next year, the outlook added.

The IMF said the global economy has held throughout a disinflationary process and averted recession, despite tightening monetary policies.

Indonesians conflicted about China, see it as closest ally and biggest threat: survey

https://www.scmp.com/week-asia/politics/article/3283425/indonesians-conflicted-about-china-see-it-closest-ally-and-biggest-threat-survey?utm_source=rss_feed

Indonesians perceive China as their country’s most valued partner and greatest threat, according to a new survey, reflecting conflicting views about Beijing’s increasing economic clout and mounting regional security concerns.

About 28.5 per cent of 820 respondents from the general public wanted Jakarta to “increase cooperation and partnership” with China, the survey by Indikator Politik showed. This was followed by Japan at 23.4 per cent and the United States at 16.5 per cent, according to the independent research firm’s findings released on October 16.

Among elite respondents – comprising academics, politicians, religious figures, and private sector professionals – 28.2 per cent favoured closer ties with China, followed by the US at 24.3 per cent and South Korea at 11.7 per cent.

Respondents among the general public from nearly 30 provinces were surveyed from December 2 to December 7 while 103 members of the elite establishment were surveyed between January 17 and June 12.

China came in first when respondents were asked about Indonesia’s closest ally, with the public and elite segments choosing the country at 20.3 per cent and 27.2 per cent, respectively. The public ranked Malaysia while elite respondents chose Japan as the second-closest ally.

In comparison, 30.2 per cent of the public also identified China as the biggest threat to Indonesia, followed by the US at 29 per cent and Israel at 11.7 per cent.

Among the elite segment, 66 per cent identified China as the greatest threat, compared with the US at 30.1 per cent.

Kennedy Muslim, a senior researcher at Indikator Politik, told This Week in Asia that the survey results showed the Indonesian public and elite held “ambiguous” views about China, seeing it as a threat and as a partner due to its growing economic influence.

“Historically, Indonesians in general never fully trust the extra-regional powers, be it the US or China,” Kennedy said. “That sentiment holds until now.”

Maritime threats

Kennedy noted the ambiguity was also reflected in Jakarta’s non-aligned foreign policy of not favouring any power.

The country’s longstanding stance was reaffirmed by President Prabowo Subianto during his speech to mark his inauguration on Sunday.

“Indonesia chooses a free and active, non-aligned approach … we chose a path of friendship with all countries,” Prabowo said. “We do not want to disturb other nations, but we will also not allow any nation to disturb us.”

China is Indonesia’s largest trade and investment partner and has played a pivotal role in the Southeast Asian country’s infrastructure development in recent years through its Belt and Road Initiative including the region’s first high-speed rail, which runs between Jakarta and Bandung.

China has also invested billions of dollars into the nickel sector in Indonesia, which has the world’s largest reserves of the metal. Indonesia banned nickel ore exports in 2020 as part of a strategy to establish a competitive electric vehicle and battery supply chain.

However, reports of fatal accidents at Chinese-funded nickel smelters have raised concerns about their environmental impact and Indonesia’s increasing economic reliance on China.

When asked about the biggest risk threatening ties between China and Indonesia, more than half of the general public respondents pointed to the increasing number of Chinese workers in Indonesia and the trade imbalance caused by an influx of cheap goods.

As for elite respondents, 43.7 per cent of them identified maritime disputes in the South China Sea as their biggest concern.

Beijing claims most of the South China Sea and has clashed with Southeast Asian claimant nations over the disputed waters.

China and Indonesia have also faced risks of a major clash in the area recently following several incidents of Chinese vessels sailing around the Natuna Islands. While China recognises Indonesia’s claim to the Natuna Islands, its controversial “nine-dash line” overlaps with Indonesia’s exclusive economic zone.

Poor views of US over Israel

Analysts noted the survey reflected a less favourable view of the US among the general public in Indonesia due to Washington’s support for Israel amid the ongoing war in Gaza.

Yohanes Sulaiman, a political analyst at the University of Jenderal Achmad Yani in West Java, said there was considerable anger among Indonesians towards Israel, which in turn influenced their negative sentiment against the US.

The conflict has led many Indonesians to boycott international brands perceived to have supported Israel in the past year. Among them, KFC Indonesia reported a net loss of US$21.5 million in the first quarter of this year, mainly due to the boycott.

The Indonesian Ulema Council, the nation’s leading body of Islamic scholars, earlier this month urged citizens to sustain their boycott, emphasising the moral imperative to support “Palestinian independence”.

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Why US election winner might find North Korea its ‘most dangerous flashpoint’ with China

https://www.scmp.com/news/china/diplomacy/article/3283359/why-us-election-winner-might-find-north-korea-its-most-dangerous-flashpoint-china?utm_source=rss_feed

The presidential race between and comes at a time of rising geopolitical tensions on multiple fronts. In the ninth report of an , Shi Jiangtao looks at the impact of rising tensions in the Korean peninsula.

Tensions between North and South Korea have been mounting in the build-up to next month’s United States election, prompting warnings that it could become the “most dangerous flashpoint” in the US-China rivalry.

It is not clear what impact the election result will have on the Korean peninsula, but observers say China may have little to gain from the situation, especially if Donald Trump returns to the White House.

Some Chinese analysts have argued that Beijing should be on high alert as North Korean leader Kim Jong-un’s escalation of tensions is at least partially aimed at forcing the new US administration to abandon its hopes of denuclearising the peninsula and shift its focus towards arms control.

They also said that if the North can cut a deal with Trump that accepts its status as a nuclear power then that could come at Beijing’s expense by weakening its position in the region.

Emboldened by increasingly close ties with Russia, Kim has accelerated his nuclear weapons programme, ditched his country’s decades-old goal of Korean reunification and declared Seoul as the “primary hostile state and invariable principal enemy”.

The North has also been accused by Kyiv and Seoul of sending more than 10,000 troops – including 1,500 special forces reportedly training in eastern Russia – to fight in Ukraine. North Korea has said the claims are “groundless rumours”, while Moscow has not confirmed the presence of the troops saying the cooperation between the two countries is “not directed against third countries”.

After sending thousands of rubbish-filled balloons into South Korea since June, Pyongyang further dialled up its hostile rhetoric towards Seoul this month, claiming its military was “ready to open fire” over alleged drone incursions.

Pyongyang says it has started destroying roads linking the two parts of the peninsula, while Kim has also vowed to become “a military superpower” and said he would destroy South Korea “without hesitation” if provoked.

American and South Korean officials have repeatedly warned of North Korean provocations aimed at the US elections and the South’s President Yoon Suk-yeol recently warned Pyongyang was likely to conduct a nuclear test or an intercontinental ballistic missile launchto grab Washington’s attention.

“The Korean peninsula is no doubt the most dangerous flashpoint in the US-China relationship,” according to Shi Yinhong, a professor of international affairs at Beijing’s Renmin University of China.

Aside from an accelerating arms race between China and the US and its key regional allies, notably Japan and South Korea, Shi pointed to several other dangers including Kim’s expanding nuclear arsenal, rumours he suffers from health problems and the secrecy surrounding the succession process.

While North Korea is desperate for both sanctions relief and international recognition, Shi said there is little hope that Pyongyang will give up its nuclear weapons.

“With nuclear missiles at his disposal, Kim has stepped up threats against both South Korea and Japan, both rhetorically and to a lesser degree, lower-intensity actual actions,” Shi said.

He also said there were worries that if his health really is failing there are fears “that he may risk everything”.

A veteran Chinese observer of Korean affairs, speaking on condition of anonymity, said the situation, especially Kim’s increasingly reckless behaviour, is deeply concerning

“North Korea has become increasingly arrogant and aggressive, which underlines Kim’s assessment that with bolstered nuclear capabilities, his country has gained an edge over the US and South Korea in particular. No one will dare to provoke it,” he said.

“But at the same time, such offensive posturing has also laid bare Kim’s deep-rooted anxiety and insecurity.”

Kim appears further emboldened by a military pact he signed when Russian President Vladimir Putin visited Pyongyang in June and reportedly pledged to help the isolated regime with food and energy.

The observers voiced concerns about the risk of a dangerous military showdown between two cold war-style blocs.

“East Asia could emerge as the next battleground in the coming years after the wars in Ukraine and the Middle East. I am very worried that the outside world has not fully grasped the complexity of the situation, which is on the cusp of turning into arguably the most critical and dangerous rivalry since World War II,” he said.

He said that with the war in Ukraine grinding on, Russia might have played a role in the latest fighting in the Middle East between Israel, Iran and the Islamic Republic’s proxies such as Hamas and Hezbollah.

Now that things do not seem to be going well in the Middle East, Putin is likely to be interested in opening a third battlefield in East Asia, in a bid to further distract the US and its allies, the analyst said.

“I don’t know if North Korea realises that it is inadvertently becoming the last resort for Putin. I think there’s a good chance that when the situation in the Middle East becomes untenable, Putin may at some point, move to open up a new front in East Asia by instigating Kim Jong-un to stir up trouble,” he added.

“Tensions on the Korean peninsula are likely to escalate into an armed conflict, with big powers trying to use the inter-Korean frictions to fight a proxy war,” he said.

The uncertainty about the White House race has further exacerbated tensions on the Korean peninsula, according to some analysts.

Kamala Harris is likely to follow President Joe Biden’s hardline approach aimed at curbing North Korea’s nuclear ambitions through sanctions enforcement, according to Seong-hyon Lee, a South Korean visiting scholar with Harvard University’s Asia Centre.

The Democratic Party removed the term “denuclearisation of North Korea” from its 2024 platform in August, in what some observers believe is a shift in focus towards nuclear arms reduction.

But Lee said a Harris administration would “uphold the goal of complete denuclearisation as a long-term objective”, “maintain a strong deterrence posture”, and seek to bolster the three-way military alliance with South Korea and Japan.

In contrast, Trump has made it clear that if he wins, he wants to cut off aid to Ukraine, improve relations with Putin, renew personal diplomacy with Kim and focus on arms control agreements or freezing North Korea’s nuclear programme rather than pursuing complete denuclearisation.

During his term in office, Trump met Kim three times in person – in Singapore in June 2018, in Hanoi in February 2019 and then in the demiliatarised zone between North and South Korea in June that same year.

Aside from offering sanctions relief and scaled down US-South Korea military exercises, a Trump victory might also result in “a reduced US military presence in South Korea, weakening the US-South Korea alliance and trilateral ties with Japan,” allowing for greater China influence.

“With Trump, Kim is likely to engage in theatrical diplomacy, but his experience with the 2019 Hanoi summit has made him cautious about expecting a breakthrough,” Lee said.

Besides, he added, Kim is fully aware that “despite Trump’s personal charm offensive, his advisers are predominantly hawkish toward North Korea and unlikely to adopt a softer stance.”

“Regardless of who wins, Kim Jong-un is expected to continue advancing his nuclear and missile programmes while strengthening ties with Russia and China to counter US pressure,” he said. “Ultimately, North Korea’s behaviour will be influenced by the broader geopolitical landscape shaped by the ongoing US-China rivalry and the extent of US-South Korea military exercises.”

Jaewoo Choo, a professor of China Studies at Kyung Hee University, also said that it remained unclear which candidate Kim may prefer.

He said last year the White House briefly considered easing economic sanctions in exchange for Pyongyang’s denuclearisation but this “is inconceivable now as North Korea has already been recognised as a de facto nuclear power by at least China and Russia”.

Choo raised concerns over the deepening security alignment among China, North Korea and Russia, on top of Beijing’s “no limits” partnership with Moscow.

“With North Korea and Russia restoring their alliance treaty this year, the bonds of alliance among the three nations have been indirectly linked,” he said.

Choo also believes recent reports suggesting a deep rift between China and North Korea – based on the lack of summit meetings or grand celebrations to mark the 75th anniversary of their establishment of formal ties – have been exaggerated.

“Such interpretations require caution when viewed historically,” he said, noting that Putin’s high-profile visit in June gave rise to speculations about a downturn in ties between Beijing and Pyongyang.

He pointed out that while Putin was the only Russian leader to have visited Pyongyang in over 70 years, there were five meetings between leaders from China and North Korea between 2018 and 2019.

Xi Jinping and Kim exchanged congratulatory messages on October 6 to mark the anniversary, while Beijing sent Zhao Leji, China’s third-highest-ranking official, to meet the North Korean leader in Pyongyang this year.

Choo said the main reason that Pyongyang’s ties with Beijing seemed cooler compared with its relationship with Moscow was mainly due to China’s need to stabilise relations with the US as its economic growth falters.

“In fact, China may be secretly pleased that Russia, by violating United Nations sanctions on North Korea, is providing economic aid to North Korea in its place, as China has to be mindful of US scrutiny,” he argued.

“Just as in the past, after the US presidential election, North Korea-China relations will likely become closer again. The relationship between the three countries must be understood within the broader historical context.”

Keith Luse, executive director of the National Committee on North Korea, a Washington-based non-governmental organisation, also agreed.

“The Chinese relationship with North Korea and the [Korean] peninsula as a whole spans centuries. Although the leaders of the two countries do not view each other in favourable terms, and while the Chinese may be off-balance due to the Putin-Kim embrace, forces in both countries will work to maintain some form of bilateral equilibrium,” he said.

But Choo said China – North Korea’s top diplomatic backer and economic lifeline – was unlikely to benefit much from the deepening stand-off between Pyongyang and Washington.

“It puts Beijing in a much more difficult situation as China prioritises its relations with the US over North Korea,” Choo said, adding Washington has pressed Beijing to use its influence over Pyongyang on denuclearisation and its supply of weapons to Russia.

The Korean affairs analyst also said Beijing should watch carefully how Kim interacts with Trump if the latter wins.

He said there was a chance of a Kim-Trump reconciliation.

“Despite North Korea’s anti-American propaganda which is primarily aimed at its domestic audience, what Pyongyang needs the most after the possession of nuclear weapons is to demand the US and the international community to recognise its status as a nuclear-armed state,” he said.

He said it was possible for North Korea to ditch its anti-US stance, based first and foremost on its need to develop nuclear weapons and strengthen domestic control, and even to help Washington oppose Beijing.

“An anti-US stance is of practical use for North Korea, as it is not only a good pretext to advance nuclear and missile capabilities, but also proved useful in rallying support from China and Russia,” he said.

In a bid to show support for Pyongyang over its anti-Western stance, China has effectively dropped the denuclearisation of the peninsula as a policy goal.

“In the short run, if Trump wants to focus on dealing with China after taking office, a nuclear-armed North Korea still has value to be utilised. It is possible that in a short period of time, he may be able to reach a separate peace agreement with Kim, striving to pull Pyongyang closer, while using North Korea’s dissatisfaction and fear of China to provoke confrontation between the two socialist neighbours,” said the expert.

China and Russia at Brics summit vow stronger cooperation for ‘fair world order’

https://www.scmp.com/news/china/diplomacy/article/3283434/china-and-russia-brics-summit-vow-stronger-cooperation-fair-world-order?utm_source=rss_feed

China and Russia are committed to boosting their cooperation for a “fair world order” amid chaotic times, their leaders stated at their third face-to-face meeting this year.

The talks between Chinese President Xi Jinping and his Russian counterpart Vladimir Putin on the sidelines of the 16th Brics summit in Kazan on Tuesday came as the two seek momentum from the emerging-economies bloc to provide an alternative to the Western-led world order.

“Russian-Chinese cooperation in global affairs is one of the main stabilising factors on the world stage,” Putin said in his opening remarks at the event.

“We intend to further increase coordination at all multilateral platforms in order to ensure global security and a fair world order.”

Xi in his remarks emphasised that “in the context of a tectonic transformation unprecedented in centuries, the international situation is undergoing serious changes and upheavals”.

“But this cannot shake my conviction … in the inviolability of the deep centuries-old friendship between our countries and the inviolability of the sense of duty of China and Russia as great powers,” Xi added, according to a meeting transcript released by the Kremlin.

The Chinese leader described the two countries as having “explored a correct way for neighbouring major powers to coexist without forming alliances, engaging in confrontation or targeting third parties”, according to state media Xinhua.

The meeting gathers members of Brics – named after founding members Brazil, Russia, India, China and South Africa – an association of major emerging economies in the world that pitches itself as an alternative to a Western-led world order.

Brics expanded this year to 10 countries after Egypt, Ethiopia, Iran, Saudi Arabia and the United Arab Emirates formally joined. A number of other countries have placed bids to follow suit, and some 40 nations were slated to take part in this week’s summit.

Xi and Putin, who last met in July, have pledged in previous meetings to continue to strengthen bilateral ties in the face of Western sanctions. This includes greater cooperation on energy, stronger defence and military ties as well as enhanced trade.

Putin highlighted closer bilateral ties with China in an October 1 message to Xi marking the 75th anniversary of the founding of the People’s Republic.

“Despite the complex international landscape, we have recently managed to significantly increase trade volumes and implement numerous large-scale bilateral projects across various sectors,” Putin wrote.

China’s volume of Russian imports has fallen since the United States and its allies levied sanctions on Moscow after it invaded Ukraine in 2022, with the sanctions hampering Moscow’s ability to settle trade using the international payment system.

But Russia remains a major source of crude oil for China, and the two have a substantial number of energy-related cooperation projects in both fossil fuels and renewable energy.

At the same time, Chinese exports to Russia have soared, reaching a highest-ever monthly figure of US$11.25 billion in September. Mainland businesses have rushed to fill in export gaps left by the departure of Western firms from Russia.

Russian Deputy Foreign Minister Sergey Ryabkov on Tuesday told Serbian newspaper Politika that “everybody will see important developments” at the summit regarding the establishment of a mutual Brics payment mechanism.

Last year, Xi and Putin agreed to a comprehensive development plan for Sino-Russian economic cooperation to run until 2030 and aimed at boosting bilateral trade volume and energy cooperation.

And at the Shanghai Cooperation Organisation summit held in Kazakhstan in July, the pair reaffirmed their commitment to defending a multipolar world, indicating ambitions to unite the Global South.

Last week, the US announced sanctions against two Chinese companies alleged to be cooperating with Russia to design and build long-range attack drones. The sanctions are the latest levied against those believed to support Russia’s war against Ukraine.

Despite its close ties with Moscow, Beijing has continued to call for de-escalation of the armed conflict in Ukraine. Foreign Minister Wang Yi took part in various talks last month to position China as a peacemaker and met Putin in St. Petersburg.

Wang accompanied Xi to Kazan, along with Cai Qi, the president’s chief of staff and China’s No 5 official.

Russia, China and Iran could stoke post-election violence, US intelligence says

https://www.scmp.com/news/world/united-states-canada/article/3283438/russia-china-and-iran-could-stoke-post-election-violence-us-intelligence-says?utm_source=rss_feed

Russia, China and Iran are intent on fanning divisive narratives to divide Americans ahead of the November 5 US elections and may consider fomenting violence after voters go to the polls, US intelligence officials said on Tuesday.

The officials, briefing reporters on US election security, said foreign actors could consider physical threats and violence, and are highly likely to conduct disinformation operations to create uncertainty and undermine the election process.

“Foreign actors, particularly Russia, Iran and China, remain intent on fanning divisive narratives to divide Americans and undermine Americans’ confidence in the US democratic system.

“These activities are consistent with what these actors perceive to be in their interests, even as their tactics continue to evolve,” said one official from the Office of the Director of National Intelligence (ODNI).

That official said influence actors, “particularly from Russia, Iran and China”, have learned from previous US elections and are better prepared to exploit opportunities to stoke unrest.

Those actors could draw on the same type of tools they have been using in the pre-election period – especially information and cyber operations – and may also consider physical threats and violence, the ODNI official added.

But US intelligence has not seen collaboration between Russia, China and Iran in election influence activities, the officials said. And, while foreign actors might seek to disrupt the process on Election Day, feeding discontent, the voting system is secure enough that they could not alter the outcome.

“Some foreign actors also have the capacity to stoke protests and take violent actions during this [post-election] period,” the ODNI official said. “In particular, Iran and Russia are probably willing to at least consider tactics that would contribute to such violence.”

A declassified memorandum released after the briefing by the National Intelligence Council (NIC) – the top US intelligence analytical body – warned that foreign operatives almost certainly will amplify false post-vote claims of election irregularities.

They also may use cyberattacks and espionage to disrupt or alter news and public government websites to promote confusion about the results and spread disinformation about the ballot-counting process, especially in races that are too close to call, the NIC said.

The US presidential race is expected to be tight. A Reuters/Ipsos poll released on Tuesday showed Democratic US Vice-President Kamala Harris with a 46 per cent to 43 per cent lead over Republican former US president Donald Trump.

China has no intention of interfering in the election and hopes that whoever wins “will be committed to growing sound and stable China-US ties”, a Chinese embassy spokesperson said in an email.

The Russian embassy and Iran’s mission to the United Nations did not immediately respond to requests for comment. Russia and Iran previously have denied US election-meddling allegations.

The ODNI official said foreign actors were using social media and other online operations to influence US presidential and congressional races, to denigrate some candidates or support others.

Some social media posts are likely to be generated by artificial intelligence, said that official, who briefed reporters on condition of anonymity.

As an example, the ODNI official pointed to a post on social media platform X, formerly Twitter, this month generated by what he called Russian influence actors that made a false allegation against Minnesota Governor Tim Walz, who is Harris’ vice-presidential running mate.

Intelligence agencies assessed that Russian influence actors created the content, the ODNI official said. A media review by the agencies showed “several indicators of manipulation” consistent with the actions of Russian actors, the official said.

That official said US intelligence concluded last weekend that the video was fake and the product of disinformation operatives, adding that it was consistent with ongoing Russian efforts to undermine the Democratic presidential ticket by fabricating allegations against Harris and Walz.

US intelligence agencies have been assessing for months that Russia would prefer that Trump retake the White House.

At Tuesday’s briefing for reporters, intelligence officials said they expected more Russian amplification of protests if Harris wins the election.

“Russia would prefer the former president to win and they would seek to more aggressively undermine the presidency of the then-president-elect [Harris],” the ODNI official said.

The NIC said “Iranian actors” may try to publish online content disparaging Trump.

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German Volkswagen executive Jochen Sengpiehl expelled from China over positive drug test

https://www.scmp.com/news/world/europe/article/3283439/german-volkswagen-executive-jochen-sengpiehl-expelled-china-over-positive-drug-test?utm_source=rss_feed

A senior executive working for German car giant Volkswagen in China has been expelled from the country after allegedly testing positive for drugs following a holiday in Thailand, German officials confirmed Tuesday.

Jochen Sengpiehl was detained and told to quickly leave the country after Chinese officials said they had detected traces of cannabis and cocaine in his blood on his return from Thailand, according to German media reports.

The German foreign ministry said it was “aware of the case” and its Beijing embassy was “in regular contact with the person concerned and his family, as well as with the local authorities”.

Sengpiehl was interrogated for hours before being put behind bars, Germany’s Bild tabloid reported.

He remained in custody for more than 10 days before VW and German embassy officials succeeded in getting him released – but he had to leave the country immediately, Bild said. Volkswagen declined to comment.

China has extremely tough anti-narcotics laws.

Marijuana was decriminalised in Thailand in 2022 although the government backtracked earlier this year and a new ban is looming.

Sengpiehl, in his 50s, had been VW’s chief China marketing officer since August 2022, according to his LinkedIn page.

Before that he was head of marketing for the entire 10-brand Volkswagen group, and was based in Germany.

The case adds to Volkswagen’s headaches in China, traditionally one of its most important markets.

It is losing ground rapidly to home-grown rivals, particularly in the area of electric vehicles.

China-led study that restarted pig’s brain offers hope for heart attack treatment

https://www.scmp.com/news/china/science/article/3283417/china-led-study-restarted-pigs-brain-offers-hope-heart-attack-treatment?utm_source=rss_feed

Chinese scientists say they have restarted a pig’s brain about an hour after removing it from the animal’s body in an experiment that could one day help resuscitate patients after a heart attack.

Cardiac arrest often leads to severe brain damage due to restricted blood flow, which is a primary cause of death.

Previous studies have suggested that the brain can only withstand five to eight minutes of ischemia, making the window for successful resuscitation very short and the chances of success very low.

The research also highlights that the liver may play a key role in repairing brain damage caused by heart attacks.

Researchers at the First Affiliated Hospital of Sun Yat-sen University in Guangzhou used a life support system to try to restore neural activities in pigs’ brains 50 minutes after removing them from the body.

The research, led by He Xiaoshun, director of the organ transplant centre at the hospital, involved international collaborators such as former president of the German Transplantation Society, Bjoern Nashan, and Andrea Schlegel, an inflammation and immunity specialist at the Cleveland Clinic.

The findings were published last month in the peer-reviewed journal EMBO Molecular Medicine.

The team developed a unique “ex vivo brain maintenance technology” called the liver-assisted brain normothermic machine perfusion (NMP). This system not only includes an artificial heart and lungs but also integrates a pig’s liver into the blood circulation.

Using the model to simulate post-cardiac arrest brain ischemia, the researchers found the presence of the liver significantly reduced the area of the brain that suffered damage, increased activity in the cortex and increased survival rates in the neurons.

Researchers anaesthetised the pigs before euthanasia and performed surgery to isolate their brains. The control group was connected to a brain-only NMP, while the experimental group was connected to a liver-assisted brain NMP.

Results showed that electrical activity in the brain eventually disappeared when using the former device, but there were marked improvements when using the latter.

Further experiments revealed that using the liver-assisted brain NMP system, the brain waves returned to a brain 50 minutes after it was removed from the body. These were then maintained for up to six hours before the experiment was halted.

But when the brains had been deprived of blood for one hour, they displayed brain waves in the first three hours of support before fading again.

According to state news agency Xinhua, this study is the first to reveal the crucial role of the liver in repairing brain damage after cardiac arrest.

An analysis suggested that the organ might protect the brain by increasing the production of ketones, a chemical produced when the liver breaks down fat.

He, the lead researcher, told Xinhua the study suggests new strategies for reviving heart attack patients and offers new pathways for brain science research.

It also provides fresh insights into organ transplants, potentially improving methods for preserving organs and enhancing the survival and functionality of transplanted organs.

“The ex vivo liver- assisted brain NMP model provides a unique platform for further investigating the maximum ischemic tolerance of the brain, and the roles of other organs in post-CA brain injury,” He wrote in the paper.

Tech war: ASML CEO sees US pressure building for more China semiconductor restrictions

https://www.scmp.com/tech/tech-war/article/3283418/tech-war-asml-ceo-sees-us-pressure-building-more-china-semiconductor-restrictions?utm_source=rss_feed

ASML Holding chief executive Christophe Fouquet expects pressure will grow from the United States to further restrict sales of semiconductor technology to China, the biggest market for the Dutch producer of chip-making machines.

“If you look at the geopolitical landscape, I think it’s clear that the US will continue to apply pressure on their allies for more restrictions,” Fouquet said in an interview during the Bloomberg Tech Summit in London on Tuesday. “The question is what is right for the Netherlands? What is right for Europe?”

Washington has been aiming for years to limit China’s rise in the semiconductor sector, through repeated rounds of export controls that have targeted the sale of advanced artificial intelligence chips and chip-making equipment. The Dutch government has struggled to find a middle ground between its US ally and the biggest market for its biggest company.

Fouquet said much of ASML’s business with China is focused on mature technology that is less relevant to national security concerns.

“A lot of the focus in China today is on mainstream semiconductors,” he said. “This is very different from AI [artificial intelligence].”

ASML has a monopoly on making the lithography machines that help the world’s largest semiconductor companies to produce most advanced chips that power everything from Apple’s iPhones to Nvidia Corp’s AI accelerators. China has never been able to buy ASML’s most advanced machines, which use so-called extreme ultraviolet technology.

The Netherlands has also restricted ASML from selling most of its second most-advanced immersion, deep ultraviolet lithography systems to China and last month published new export control rules that made ASML apply for export licences in The Hague.

China relies on ASML’s systems to advance its chip-making technology, as the country has not yet been able to develop similar equipment capable of producing cutting-edge semiconductors.

China was ASML’s biggest market for the past five quarters, accounting for €2.79 billion (US$3 billion) of sales in the third quarter, nearly half of ASML’s total.

Fouquet said that Chinese demand had been elevated owing to a backlog that dated to orders placed during the Covid-19 pandemic. ASML expects sales to China to shrink to about 20 per cent of total revenue next year, a level that it considers more normal.

China eyes ‘top-tier industrial workforce’ by 2035, vows hi-tech training, talent support

https://www.scmp.com/news/china/politics/article/3283404/china-eyes-top-tier-industrial-workforce-2035-vows-hi-tech-training-talent-support?utm_source=rss_feed

China aims to boost training, support and “ideological guidance” for its industrial workforce, to create a highly skilled talent pool as the country doubles down on hi-tech development.

The goals were laid down in a set of guidelines issued jointly by the Communist Party Central Committee, the core leadership body of the ruling party, and the State Council – China’s cabinet.

According to the guidelines, the country will focus on training to drive the development of “a top-tier industrial technical workforce” and provide talent and skill support for “Chinese-style modernisation”.

The industrial workforce is “the backbone of creating social wealth, and a key force in implementing innovation-driven development strategies and accelerating the construction of a manufacturing powerhouse”, the document released on Monday but dated October 12 said.

It also called for efforts to “unite and guide industrial workers to play a leading role in the construction of Chinese-style modernisation”.

Main goals listed included “solidifying ideological and political guidance” for the workforce, and improving its overall quality “with an ever-expanding team of knowledgeable, skilled, and innovative industrial workers”.

The country also aims to produce around 62,000 “master artisans” by 2035, including 2,000 defined as “national-level craftsmen”, according to state news agency Xinhua’s report on the guidelines.

The party’s top leadership has repeatedly called for technological innovation as the country focuses on self-reliance and “new quality productive forces” amid a tech war with the United States, which has sought to curb China’s hi-tech access.

According to Monday’s guidelines, the training system should be improved so the workforce can meet emerging industry needs.

Modern vocational education will be improved to integrate practical training, along with the creation of quality courses and teaching teams. Skilled professionals will be encouraged to become educators, and teaching capabilities should be improved to set up vocational schools that meet international standards.

Improved worker welfare is also among the national goals for 2035, with the guidelines calling for a better support system for the career development, labour rights and well-being of industrial workers. This should be done through higher pay based on skills and innovation, and by ensuring job security with written contracts and labour dispute resolution mechanisms.

Another focus is protection of intellectual property rights related to innovation, and guiding skilled workers to take part in major technological projects and awards.

Meanwhile, working environments should be improved to “enhance the appeal of manufacturing jobs” for young people, the guidelines said, at a time when China is battling record joblessness among the 16-24 age group.

Migrant workers will be provided with skills training as well as support for their integration into cities. This will be done by relaxing rules related to hukou – or household registration – so they can better access social welfare where they live for work.

In emphasising the need to “strengthen ideological and political guidance”, the guidelines said this aimed to ensure loyalty to the ruling party.

It called for efforts to promote the party’s “innovative theories” among industrial workers and “to deepen education on socialist core values”.

China’s financial reforms an invitation for foreign firms to boost growth: BOC chairman

https://www.scmp.com/business/banking-finance/article/3283411/chinas-financial-reforms-invitation-foreign-firms-boost-growth-boc-chairman?utm_source=rss_feed

The liberalisation of China’s financial sector will remain attractive for foreign institutions, as the sector plays a pivotal role in the country’s broader strategy of opening up, according to the chairman of Bank of China (BOC).

“China is opening up and will continue to have more favourable conditions and opportunities for foreign financial institutions,” Ge Haijiao said in Beijing on Tuesday. The finance sector is the “life blood” of China’s economy, he added.

Ge was speaking at Sibos, a global financial services event organised by Swift. The four-day annual conference and exhibition, which has brought together nearly 10,000 participants, ends on Thursday.

The same sentiment was shared by Lu Lei, the deputy governor of the , at Sibos on Monday, who said China’s financial sector will continue to embrace opening up and cooperation.

“As experience has shown, opening up is an important driving force for ‘high quality’ development of the financial sector,” Lu said.

The central bank said it would support leading Chinese firms that want to go public or issue bonds overseas, while also encouraging foreign sovereign wealth funds and financial firms to invest in China.

The opening up of China’s economy has led foreign financial institutions to rapidly increase their presence in the country. At the end of 2023, banks from 52 countries had established a presence in China.

Nearly half of the world’s 40 largest insurance companies have also ventured into China, while there are nearly a dozen foreign-controlled securities firms, including those by Goldman Sachs and JPMorgan Chase.

“The country’s vast market, strong growth prospect and deep capacity for risk mitigation present extraordinary opportunities for international financial institutions, making China a hotspot for foreign business and investment,” Ge said.

As the country opens up, the competitiveness of China’s financial sector will also be boosted, and expand its global influence, he added.

In addition, China’s financial markets are increasingly open to working with their international counterparts, which is vital to supporting the nation’s development, said Ge, citing the example of the asset management industry. Since 2021, foreign entities have been allowed to establish wholly owned asset management firms in China.

China’s 400-million strong middle class segment, the world’s largest, will continue to expand significantly up to 2035, creating immense demand for asset management services and substantial market opportunities, according to the BOC chairman.

Meanwhile, as China accelerates its transition towards a low-carbon economy, financial resources will play a crucial role in promoting this green transformation. Ge said “the Chinese government encourages foreign investment” into the nation’s green industries and green finance markets.

Additionally, he said China’s ageing population is becoming a long-term structural feature that is impacting China’s socioeconomic development, and will drive rapid investment growth and asset management services to meet emerging needs in this area.

“This shift will facilitate the introduction of local investment philosophies and innovative products, addressing diverse investor demands and fostering a two-way interaction between the Chinese market and global financial resources,” Ge said.

China KOL with 20 million fans accused of sending team to assault man over food claims

https://www.scmp.com/news/people-culture/china-personalities/article/3282431/china-kol-20-million-fans-accused-sending-team-assault-man-over-food-claims?utm_source=rss_feed

An influencer in China known as the combative version of rural-life internet star Li Ziqi has triggered public backlash for selling mislabelled food and letting her team attack the men who exposed it online.

On September 23, two Douyin key opinion leaders (KOL) revealed that Sister Yu, whose account @dongbeiyujie had over 22 million followers on the platform, sold tapioca noodles labelled as sweet potato noodles.

Sister Yu dispatched her team to beat them up when they visited her place to protest about their rights as consumers.

Three days later a tearful Sister Yu apologised during a livestream, saying she had sent the noodles for quality check, and her team’s conflict with the two KOLs got physical because they secretly took videos of them, and demanded a 300,000-yuan (US$42,000) in compensation.

Results came out on October 12 confirming the sweet potato noodles she sold at her livestream had been mislabelled tapioca noodles, and her livestream sales were “false advertising”.

The administration for market regulation at Benxi city in northeastern China’s Liaoning province fined her company 1.65 million yuan (US$232,000) and suspended its business.

Sister Yu had promised to refund the noodles and pay three times the purchase price in compensation.

Quality checks revealed the tapioca noodles she sold were edible, but was said to contain lower nutrition.

Sister Yu, 46, whose real name is Chang Xiaoyu, went viral at the beginning of 2023 for videos of her cooking feasts and slaughtering animals set in the northeastern countryside background.

Her powerful and independent working style, as well as the large share of the dishes the Chinese northeastern region boasts, gained her public image as the “combative” version of Li Ziqi, who became China’s top online personalities for her rustic-chic videos.

Sister Yu, who was reported to have grown up in a poor rural northeastern family with her grandparents after her father died and mother remarried, was regarded by some as a self-help and feminist icon who reversed traditional Chinese patriarchal power relations.

Her husband Bai Guohui, who she called Lao Kuai in her videos, appeared to be cute and obedient in front of her, while he was in fact the controlling shareholder of 28 of the 30 companies the couple owned.

It was not the first time Sister Yu sparked controversy for the products she sold.

A September video of her catching crabs in a rice field was discovered to be a staged video using river crabs caught elsewhere.

China Central Television revealed that even the rural farmhouse in Moshiyu village, where Sister Yu shot most of her videos, was fake. Villagers said she was not a local, and her team rented the farmhouse to make videos.

She had emptied her Douyin shop at the time of writing. The Post’s request for further response went unanswered.

Xi Jinping makes economic-centric instructions to spur China’s growth

https://www.scmp.com/economy/policy/article/3283393/xi-jinping-makes-economic-centric-instructions-spur-chinas-growth?utm_source=rss_feed

President Xi Jinping has issued a slew of economic-centric instructions in the past week, at a time all eyes are watching Beijing’s stimulus package aimed at shoring up China’s economy.

The latest message from Xi was conveyed on Sunday in the northeastern city of Tianjin during an event to celebrate the 40th anniversary of China’s economic development zones.

During his inspection tours of Fujian and Anhui last week, Xi had also been seemingly seeking to gain a first-hand understanding of how the world’s second-largest economy is faring, and how a slew of recent policies are being implemented.

The push for development came as China’s economy is being weighed down by a mix of domestic challenges and global uncertainties, adding to concerns over meeting its annual growth target.

During his tour in Fujian, Xi invoked a spirit of “daring to be the first and striving to win”, while in Hefei in Anhui province, he quoted a famous saying: “How many times in life can one seize the moment to fight?”

Vice-Premier He Lifeng conveyed Xi’s instruction during a symposium marking the 40th anniversary of the first national level Economic and Technological Development Zone on Sunday.

Xi emphasised that “national-level economic and technological development zones should focus on advancing China‘s modernisation, continuously stimulating innovation and internal dynamism … participate in the high-standard Belt and Road Initiative … and help build the ‘Invest in China’ brand”.

The zones, symbols of China’s opening up and reform over the past decades, became major economic growth engines for local economies as they started from coastal areas in the likes of Guangdong, Fujian, Shanghai.

Zhang Zhiwei, president and chief economist at Pinpoint Asset Management, said Xi’s speeches during the tours were consistent with the message conveyed during a Politburo meeting at the end of September, where the decisions on “a package of incremental policies” to boost the economy were made.

“The economy is under pressure, so that the [central] government really wants to mobilise the local government officials to take stronger initiatives to help [revive] the local economy, to take on more responsibilities and become more proactive,” Zhang said.

The vice-premier also delivered a speech in Tianjin and said development zones must recognise new challenges, act as pioneers for reforms, drive regional development and lead China’s economic transformation and global integration.

China has established 229 Economic and Technological Development Zones since the first national level development zone was established in 1984, and they have been pivotal in advancing high-quality manufacturing and promoting open, high-level economic systems.

In the first six months of the year, the zones generated 15.2 trillion yuan (US$2.1 trillion) in industrial output, representing a year-on-year increase of 3.7 per cent, according to the Ministry of Commerce.

They also contributed 1.3 trillion yuan in fiscal revenue, with tax revenue reaching 1.2 trillion yuan.

The zones also reported an import and export value of 4.7 trillion yuan, marking a 9.2 per cent increase compared to the same period last year.

However, actual use of foreign capital fell by 27.2 per cent to US$16.6 billion during the same period.

Chinese leaders are contending with a host of economic challenges, from lacklustre domestic demand to uncertainty around hitting the “around 5 per cent” annual growth target.

To revive the economy, Beijing has launched a full-scale policy offensive aimed at reigniting growth, but questions remain whether the steps will be enough to turn the tide.

The recent press conferences held by the Ministry of Finance and the Ministry of Housing and Urban-Rural Development announced a range of measures aimed at stabilising the economy, focusing on real estate and fiscal policy.

The steps set the stage for upcoming high-level meetings, including the highly anticipated National People’s Congress Standing Committee and Politburo session, as well as the central economic work conference in mid-December.

The key gatherings are expected to outline broader strategies for boosting growth and tackling the complex challenges facing China’s economy.

Additional reporting by Ji Siqi

Tim Cook makes low-key visit to China as Apple Intelligence roll-out remains uncertain

https://www.scmp.com/news/china-future-tech/ai/article/3283384/tim-cook-makes-low-key-visit-china-apple-intelligence-roll-out-remains-uncertain?utm_source=rss_feed

Apple chief executive Tim Cook returned to Beijing on Monday, his second visit to mainland China this year, as speculation swirls over the domestic launch of the US tech giant’s on-device artificial intelligence (AI) system.

Cook’s latest visit to the country saw him accompanied by famous Chinese photographer and filmmaker Chen Man, as well as meet with students from China Agricultural University and Zhejiang University at a farm in the Beijing district of Shunyi, according to posts published by the executive on microblogging platform Weibo and local media reports.

In his latest Weibo post on Tuesday, Cook said he visited an Apple Store in downtown Beijing to meet customers and the company’s local staff.

Apple did not immediately respond to a request for comment on Tuesday regarding Cook’s itinerary in his latest visit. There were also no media releases from any Chinese ministry about meeting with Cook this week.

This marks Cook’s second China trip this year. In March, Cook made a whistle-stop tour of Shanghai, where he met some major suppliers and opened the 57th Apple Store in the company’s Greater China region, covering the mainland, Hong Kong, Taiwan and Macau.

The Apple chief executive’s latest visit to the mainland reflects his efforts to keep his ear to the ground in one of the company’s largest markets, as analysts see consumer enthusiasm for the iPhone 16 has been tepid because of the delayed local availability of Apple Intelligence.

Apple is expected to soon release the latest update to its mobile operating system, iOS 18.1, for the iPhone. The company has not revealed whether it will have a Chinese partner to supply AI features for the iPhone 16 in the world’s largest smartphone market.

Chinese Android handset vendors are already pushing new AI features in their devices. South Korean giant Samsung Electronics earlier this year announced that Baidu’s AI model will be integrated into the firm’s latest flagship smartphone series, the Galaxy S24.

Under Cook’s latest post on Weibo, some Chinese netizens called for the expedited launch of Apple Intelligence on the mainland.

A Weibo user with the handle Gaotongxiaolong wrote in English: “Please do something serious! You know I’m talking about Apple Intelligence, right?” Another user asked Cook if his visit “was for negotiating [the roll-out of] AI with the Ministry of Industry and Information Technology”.

During Apple’s earnings call in August, Cook said the company was “very constructively engaged” with regulators in China and the European Union about bringing AI features to iPhone users. “We have to understand the regulatory requirements before we can commit to doing that and commit a schedule to doing that,” he said.

Meanwhile, major Chinese Android handset makers, from Xiaomi to Oppo and Vivo, have been touting generative AI (GenAI) functions in their latest devices. GenAI can create images, text, videos and other media in response to user prompts.

As of August this year, Chinese regulators have approved a total of 188 GenAI services, all of which were developed by mainland tech firms.

More than 60% of Chinese over 60 are empty nesters, survey finds

https://www.scmp.com/news/china/politics/article/3283392/more-60-chinese-over-60-are-empty-nesters-survey-finds?utm_source=rss_feed

Nearly 60 per cent of people aged 60 and over in mainland China are empty nesters – an increase of more than 10 percentage points in a decade – and most say they cannot afford to live in a nursing home, according to a nationwide survey.

The poll, conducted every five years by the Ministry of Civil Affairs, found that people in the age bracket were also less dependent on their children. The average number of children per household dropped by 0.6 over the decade to 2021 – to 2.6 children – as a result of the one-child policy introduced in the late 1970s.

Some 130,000 people aged 60 and above took part in the survey in August 2021.

It also found that nearly half of those willing to live in nursing homes could afford to pay up to 1,000 yuan (US$140) in monthly fees. That would put most aged care facilities out of reach in China’s big cities like Beijing and Shanghai, where the cost is more than 5,000 yuan a month.

“China’s traditional way – relying on children to support their elderly parents – is being seriously challenged,” the National Committee on Ageing, which is affiliated with the ministry, wrote in the survey report released last week.

“The rapid growth of the empty-nest elderly population calls for better care services and coordinated policies to improve their well-being.”

The world’s second-largest economy is grappling with an economic slowdown and the mounting pressures of a rapidly greying population alongside a shrinking workforce.

In 2023, the number of people aged 60 and above reached 297 million, accounting for more than 21 per cent of the total population, according to official data. The population aged 65 and over exceeded 217 million, making up 15.4 per cent of the total.

The Economist Intelligence Unit forecast earlier this year that the proportion of people above age 60 would account for nearly a third of China’s population by 2035.

The latest survey results also showed a huge gap in annual incomes of people in the over-60 age group living in urban and rural areas. For urban dwellers the average was 47,000 yuan, compared to just 14,000 yuan for those in rural areas.

Pensions are the major source of their incomes but with the main state pension fund expected to dry up by 2035, the government is encouraging people over 60 to work. “The health status of older people has been improving,” the report said. “An increasing number of younger seniors – those aged between 60 and 69 – are getting jobs.”

Around 19 per cent of people in that age bracket were employed as of 2021, 8.8 percentage points higher than five years earlier, the survey found.

The National Committee on Ageing released a set of guidelines last month for an initiative called Silver Age Action that was introduced two decades ago to encourage elderly Chinese to take up volunteer work.

Under the new guidelines, local authorities are being urged to help older volunteers take part in childcare, senior care and disability assistance, as well as provide support for disadvantaged and “left behind” children who remain in rural areas while their parents go to work in big cities.

Zhao Yuwen, 62, who lives with her husband in the eastern province of Jiangsu, said she did casual work for restaurants preparing food and cleaning every day from 6am to 2pm to help support her son’s family, though they did not live together.

“In the afternoon, there’s still time for family chores,” she said. “I don’t earn much, but it makes me feel good that I can help my son. These days young people are having a hard time because the economy is bad.”

She said she could not imagine living in a nursing home when she gets older. “I definitely can’t afford to spend thousands of yuan a month either,” she said. “I’ll just stay at home.”

India’s bid to cash in on US-China trade war fizzles as Vietnam makes hay

https://www.scmp.com/news/asia/south-asia/article/3283387/indias-bid-cash-us-china-trade-war-fizzles-vietnam-makes-hay?utm_source=rss_feed

India’s attempts at boosting its manufacturing sector by capitalising on the US-China trade war have fallen short, according to a new study, with other Asian rivals benefiting to a much greater extent from escalating tensions between the world’s biggest economies.

Between 2017 and 2023, India’s total share in US imports rose by 0.6 percentage points to 2.7 per cent while mainland China’s portion dropped by around 8 percentage points to under 14 per cent, according to Oxford Economics. The biggest beneficiary from the trade diversion in the region has been Vietnam, whose total share in US imports grew by 1.7 percentage points to 3.7 per cent in the period.

Taiwan and South Korea have also made greater strides than India, increasing their share of US imports by 1 percentage point and 0.7 percentage points, respectively, according to Oxford.

The study underscores the uphill task facing Prime Minister Narendra Modi as he attempts to boost the country’s lagging manufacturing sector, whose share of gross domestic product has remained broadly stagnant at 17 per cent for over a decade. The research also implies that India may struggle to make significant gains if Donald Trump returns as US president and follows through with a threat to impose a 60 per cent tariff on Chinese goods.

“The US-China trade war so far has improved India’s export prospects only to a limited extent, dashing hopes that an escalation of the conflict could boost the lagging manufacturing sector,” Alexandra Hermann, an economist at Oxford Economics wrote in a note. “India’s export strengths largely lie in sectors of the ‘old economy’, where growth potential is limited and competition is fierce.”

India has made substantial advances in boosting electronic exports to the US, but its imports of components from China have surged as well, suggesting there’s little value added to domestic manufacturing. According to Oxford, China accounted for about a third of India’s imports of electronics, machinery and chemicals & pharmaceuticals in 2023. For components such as certain semiconductor devices, as much as 67 per cent of India’s imports came from China.

“This leaves India at risk of becoming subject to US trade restrictions, with other third countries such as Vietnam already experiencing greater US protectionism,” Oxford said in its report.

India also has not been able to attract a greater portion of global foreign direct investment, even as FDI flows to China plummet, it said.

Envoy says US tech restrictions against China may ‘plunge the world into the abyss’

https://www.scmp.com/news/china/diplomacy/article/3283350/envoy-says-us-tech-restrictions-against-china-may-plunge-world-abyss?utm_source=rss_feed

A Chinese diplomat took a veiled swipe at the US strategy of hi-tech restrictions, warning a United Nations meeting it could lead the world into an “abyss of confrontation”.

Fu Cong, Beijing’s permanent representative at the UN, accused “individual countries” of attempting to “consolidate their own technology monopoly and contain the development of other countries” by building a so-called “small yard, high fence” on the pretext of national security – an apparent reference to the United States.

Fu was speaking at a UN Security Council briefing on the anticipated impact of scientific developments on international peace and security.

“The ‘small yard and high fence’ has become a ‘large yard with an iron curtain’, seriously destabilising industrial and supply chains, increasing development gaps and hindering technological progress,” Fu said.

“We are particularly worried that these man-made divisions, compared to the risks posed by technology itself, will be more detrimental to international peace and security, and may ultimately plunge the world into the abyss of confrontation.”

His comment comes just two weeks before the US presidential election. It is widely expected that regardless of whether the Democratic candidate Kamala Harris or her Republican rival Donald Trump wins, the fierce technology war between the world’s two largest economies is likely to continue.

In a speech in April 2023, US national security adviser Jake Sullivan described the small yard and high fence approach as “protecting our foundational technologies” and said the White House had carefully implemented “tailored restrictions” on the most advanced semiconductor technology exports to China.

Beijing pushed back against the practice, labelling it containment. But Washington argued that it was only focused on a narrow slice of technology and a small number of countries that were intent on challenging the US militarily.

The Biden administration is finalising rules to ban particular US investments in artificial intelligence in China, with an expected release within the next week, according to a Reuters report on Monday.

Maintaining US leadership in high-end technologies such as semiconductors, innovative drugs and new materials has had bipartisan consensus in the US, analysts with China International Capital Corporation, one of the country’s top investment banks, said in a note on Tuesday.

But it said Democrats and Republicans might have different views regarding specific technological restrictions on China as former US president Trump focused on supply chains and talent when he was in office while President Joe Biden has placed greater emphasis on chips and semiconductors.

At the Security Council meeting, Fu warned that technological development also brought new challenges for international peace and security despite offering great convenience and opportunities.

“The recent conflicts in Gaza and Lebanon showed us the unimaginable disruption in civilian casualties caused by AI-driven algorithms and remote manipulation,” he said. “The misuse of technology in violation of international humanitarian law must be condemned and resisted.”

He called for rejecting “the use of one’s technological edge to violate other countries’ sovereignty, interfere in others’ internal affairs or undermine their stability”.

Thousands of handheld pagers and hundreds of walkie-talkies intended for use by Hezbollah exploded across Lebanon and Syria in an alleged Israeli attack last month, killing dozens of people, including civilians, and injuring thousands more.

Israeli media reports earlier this year said the country’s military had used surveillance technologies, AI and other digital tools to help determine targets to attack in Gaza.

China and the US held their first intergovernmental meeting on AI in May to exchange views on its risks.

Beijing said it took a “solemn position on the US restrictions and repression” of China in AI while Washington raised concerns about China’s “misuse of AI”.

Track 2 talks – known as backchannel diplomacy – between the two countries have since continued in that area.

This month, delegations from Tsinghua University’s Centre for Strategic and Security Studies and US think tank the Brookings Institution held their latest round talks on AI and international security in Venice. Colin Kahl, former US under secretary of defence for policy in the Biden administration, was among those attending.

China’s central bank moves to jolt stock market with 50-billion-yuan swap operation

https://www.scmp.com/economy/economic-indicators/article/3283323/chinas-central-bank-moves-jolt-stock-market-50-billion-yuan-swap-operation?utm_source=rss_feed

The Chinese central bank’s swift enactment of swap facilities has raised market expectations of a firm implementation of monetary-easing policies to help drive up the country’s economic activities.

The People’s Bank of China (PBOC) announced its first swap operation, including with securities, fund companies and insurance companies, with a total amount of 50 billion yuan (US$7.03 billion) on Monday.

The tool was one of the first-batch policies announced on September 24, and it was officially launched immediately after the National Day holiday to provide liquidity to the stock market.

“The swifter move in monetary policies reflects that the growth pressure has reached a tipping point, and [it serves as a] green light from the high government level to roll out stimulus,” said Gary Ng, a senior economist at French investment bank Natixis.

Twenty institutions participated in the auction, with a fee rate set at 20 basis points, according to the central bank’s official statement.

These 20 institutions include Citic Securities, Huatai Securities and China Merchants Securities, with an application amount of more than 200 billion yuan, the China Securities and Regulatory Commission said on Friday.

The swap period is set for one year, with the possibility of an extension depending on circumstances, the commission said.

The swap facility enables brokers, asset managers and insurance companies to exchange assets with poorer liquidity, for assets with higher liquidity, from the central bank by using asset collateral, which can then be used for stock purchases.

“Supporting the financial market is a step to support the wealth effect, which has diminished over the past few years,” Ng said.

“Slow policy implementation has been a sore point in China’s efforts to rescue the economy and has caused market confusion.”

Markets have been expressing disappointment after the country’s top economic planner failed to provide a headline stimulus figure.

China reported economic growth of 4.6 per cent in the third quarter, the slowest quarterly growth in more than a year, according to data released by the National Bureau of Statistics.

The January-September growth was 4.8 per cent, still shy of the annual target of “around 5 per cent”.

China holds live-fire drills opposite Taiwan, a week after large-scale exercise

https://apnews.com/article/china-taiwan-live-fire-drills-4f7b62d187f68878acdacdd4d55fb891In this screen grab from video released by the Taiwan Coast Guard, a view of a China Coast Guard boat from a Taiwan Coast Guard boat as it passes near the coast of Matsu islands, Taiwan on Monday, Oct. 14, 2024. (Taiwan Coast Guard via AP)

2024-10-22T03:58:41Z

TAIPEI, Taiwan (AP) — China is holding live-fire drills off the coast of its southern Fujian province facing Taiwan, just a week after a massive air-and-sea drill it called punishment for Taiwan’s president rejecting Beijing’s claims of sovereignty.

The live fire drills were being held near the Pingtan islands off Fujian province from 9 a.m. to 1 p.m., according to a notice from the Maritime Safety Administration. It warned ships to avoid the area. It did not offer additional details.

Taiwan’s Defense Ministry said China’s drills were part of an annual exercise and was tracking them. “It cannot be ruled out that it is one of the ways to expand the deterrent effect in line with the dynamics in the Taiwan Strait,” the statement added.

Taiwan is a self-ruled island that Beijing claims is part of China. Tensions around the issue has flared in recent years. China has increased its presence in the waters and skies around Taiwan. It now increasingly sends large amounts of warplanes and navy vessels in military exercises near Taiwan and its coast guard carries out patrols.

Last week, China held a one-day military exercise aimed at practicing the “sealing off of key ports and key areas.” Taiwan counted a record one-day total of 153 aircraft, 14 navy vessels, and 12 Chinese government ships.

In response to Chinese moves, the U.S. has continued to host what it calls “freedom of navigation” transits through the Taiwan Strait. On Sunday, the destroyer USS Higgins and the Canadian frigate HMCS Vancouver transited the narrow band of ocean that separates China and Taiwan.

Germany sent two warships through the Taiwan Strait last month as it seeks to increase its defense engagement in the Asia-Pacific region.

A look at how Philippines-China’s round-table discussion manages ‘lost in translation’ ties

https://www.scmp.com/week-asia/politics/article/3283284/look-how-philippines-chinas-round-table-discussion-manages-lost-translation-ties?utm_source=rss_feed

In a rare look into the diplomatic exchanges between China and the Philippines, a member of Manila’s delegation at a recent round-table discussion with Beijing’s vice-foreign minister revealed the deep disagreements over maritime issues that continue to strain bilateral talks while also expressing hope for future cooperation.

Chester Cabalza, president of the International Development and Security Cooperation think tank and a member of the delegation, admitted the round-table discussion in Beijing on October 14 did not produce any agreements. He characterised the discussions as candid but challenging, with both countries standing firm on their territorial claims.

“Both delegations gave space to air their differences but [were] still in disagreement. In other words, the two countries are still lost in translation in leveraging their own sides of the coin,” Cabalza told This Week in Asia.

Cabalza was part of the 11-member-strong delegation from the Philippines, composed of retired ambassadors, generals, chief executive officers and scholars.

The round-table discussion, organised annually by the Chinese People’s Institute of Foreign Affairs and the Philippine Council for Foreign Relations (PCFR), was classified as a Track II diplomacy dialogue, or conflict resolution efforts by non-state actors.

Track II diplomacy is aimed at allowing participants to explore sensitive issues without the pressure of official negotiations, fostering open communication that can later inform formal government-level talks.

A readout from the Chinese Ministry of Foreign Affairs said Vice-Foreign Minister Chen Xiaodong met the PCFR delegation, with both sides having “an exchange of views on China-Philippines relations and maritime issues, among others”.

The Philippine side also raised security concerns about offshore gaming operators, environmental degradation and the critical importance of the 2016 arbitral award to its maritime integrity, Cabalza said.

The arbitral award, issued by a tribunal at The Hague under the United Nations Convention on the Law of the Sea (Unclos), invalidated China’s claims based on the nine-dash line in the South China Sea, ruling in favour of the Philippines’ rights over its exclusive economic zone (EEZ). China rejects the ruling and continues to assert its territorial rights in the disputed waterway.

The discussion came in the wake of an October 11 incident in which 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 near Thitu Island, causing damage to the vessel. Cabalza said Chinese officials refrained from addressing the collision directly.

Tensions over the contested Second Thomas Shoal – known in the Philippines as Ayungin – were also a topic of discussion at the discussion. Manila has stationed a World War II-era vessel there as a Philippine outpost despite strong Chinese objections.

Cabalza noted that Beijing said it had been practising restraint in the hope that both parties would resolve the matter quietly. But “if Manila insists on occupying the Ayungin Shoal, Beijing will be forced to take the Scarborough Shoal from the Philippines”, Cabalza said.

However, the Philippines “negated” China’s claims of self-restraint in the Second Thomas Shoal, he added.

According to Cabalza, the Chinese delegates also maintained that their country had strong historical claims to the South China Sea, arguing the 1943 Cairo Declaration as the basis for the nine-dash line, under which the country claims nearly all of the disputed waterway.

The 1943 Cairo Declaration stated that Japan would return territories seized during its expansion, including Taiwan and Manchuria, to China. Beijing argues this declaration supports its claims to the South China Sea islands, asserting that Japan’s post-war territorial losses included the islands, though they were not explicitly mentioned in the declaration.

Matteo Piasentini, an analyst for Geopolitica.info and lecturer at the University of the Philippines’ political science department, said the 2016 arbitral tribunal concluded that China as a party to Unclos had forfeited any historical claims that were inconsistent with the convention, which upheld the Philippines’ rights over its EEZ.

“It is about upholding the validity of general rules of international law to construct and maintain a stable maritime order … [China] can’t simply invoke pre-existing historical titles or claims when the rules no longer suit their interests,” Piasentini told This Week in Asia.

According to Cabalza, China believes that both countries should “not allow difficulties to dominate its relationship” and expressed interest in deepening economic ties, adding that it was open to engaging in more substantial legal and historical debates.

“While there is an apparent hiccup in the West Philippine Sea, [it is apparent that] the Philippines must project an image as a possible economic partner of China. Chinese companies are so competitive worldwide that they are sensitive to political and security issues,” Cabalza said.

Beijing also urged Manila to appreciate its restraint in the South China Sea, as it was “bigger and mightier than the Philippines”, he added.

Cabalza reiterated Manila’s stance that trade and security were deeply interconnected, even as the arbitral award remained a major obstacle in the Philippines’ strategic relationship with China.

“The Philippines has consistently shown its intention to deepen relations with China, particularly in the economic domain, which is usually mutually beneficial and doesn’t require costly strategic compromises,” Piasentini said, adding that Manila would prefer a more ambivalent stance between the US and China, but aligned with Washington “out of necessity”.

Piasentini said Philippine presidents had generally sought “positive engagement with China” and it was up to Beijing to “fulfil its promises while understanding that asking a neighbour to give up its sovereign rights isn’t reasonable”.

Manila could pursue more dialogues and reach more provisional solutions if it negotiated from a position of strength, bolstered by deterrence, Piasentini added.

With China remaining open to further discussion, Cabalza said Manila should take this as a “golden opportunity” to pave the way for stronger people-to-people engagement.

“Only China and the Philippines can resolve their maritime and strategic differences, not even their own allied partners,” he said.

Waiting for Trump? How EU’s China policy anticipates his return to the White House

https://www.scmp.com/news/china/diplomacy/article/3283297/waiting-trump-how-eus-china-policy-anticipates-his-return-white-house?utm_source=rss_feed

As the EU’s 27 member states prepared to vote on whether to impose steep tariffs on Chinese-made electric vehicles earlier this month, several were called on by American diplomats.

The message was simple: if you vote against these duties and if Donald Trump wins the US presidential election in November, then the bloc’s ability to make a deal with him that might involve China policy would be severely diminished.

That US diplomats were lobbying their European counterparts to take a tougher stance on China should not be a surprise. But what may raise a few eyebrows is the fact that they were asked to intervene by the European Commission, which had proposed additional tariffs of up to 35.3 per cent on the imports – but which was feeling the squeeze as China pressured EU capitals to vote against them.

“We are walking a fine line here,” said one senior official at the time. If the vote failed, it would have killed EU credibility as a tough actor on China – which may come in handy if Trump wins and tries to negotiate continued US support for Ukraine in exchange for Europe’s backing for a hardline agenda on Beijing.

In the end, the tariffs passed comfortably and while it is unclear how much the US lobbying swayed the vote, the episode illustrated how the fear of Trump 2.0 is percolating through almost every fibre of EU policymaking, just two weeks ahead of the election.

Trump, the former president who is the Republican nominee is vying against US Vice-President Kamala Harris, his Democratic rival, in the November 5 election, and surveys show the race to be extremely close.

After four years of relative transatlantic harmony forged by US President Joe Biden, Trump has pledged to restoke tensions with Europe, threatening to impose tariffs on its exports to the US, to slash US funding for Ukraine, and questioning whether the US would intervene should Russian President Vladimir Putin invade a Nato member state.

“You know what’s very tough? The European Union – our beautiful European countries … They treat us so badly,” Trump said in an interview with Bloomberg last week.

When Trump first came to power after his surprise election win in 2016, the EU was ill-prepared. Biting tariffs on European goods caught them off guard, while the astonishing surge in US-China tensions pushed the bloc closer to Beijing.

Determined not to make the same mistake again, bureaucrats have worked for months to “Trump-proof” the EU against his possible return, a scenario they hoped would never happen. A key part of this planning has focused on China.

A task force under the European Commission’s secretary general, Ilze Juhansone, has gamed out post-election scenarios on China, ranging from the expected – higher US tariffs on Chinese products – to the far-fetched, such as Trump switching US diplomatic recognition of China from Beijing to Taipei.

In each scenario, experts from across the bloc have weighed in on what Europe’s options are. Baskets of carrots and sticks have been prepared for Trump including “Day One” offers to buy more US goods to reduce the trade deficit – and targeted retaliatory tariffs of more than 50 per cent if those offers fail.

Since 2016, EU ties with Beijing have frayed so badly that almost nobody expects the kind of detente Brussels and Beijing maintained when Trump was first elected.

Several EU sources said that there was little distinction between how they and the US regard the challenges posed by China. The difference is what they want to do about it.

“When we say we want to ‘de-risk but not decouple’, we mean it,” said one senior EU official, speaking under condition of anonymity, who believed that the US, on the other hand, wants to build a “world in which you can manage without China”.

The converging US and EU views on Beijing has let Brussels believe that there may be margin to cooperate with Trump on China if it helps buy some breathing space on Ukraine, or even on trade matters.

The recent reappointment of Ursula von der Leyen as European Commission president helps advance this theory: she has become Europe’s most powerful China hawk, and with weak governments in Berlin and Paris, looks set to dominate EU policy for another five years.

Trump and von der Leyen “have more in common [on China] than many other leaders,” said Tobias Gehrke, a geoeconomics analyst at the European Council on Foreign Relations.

“But what von der Leyen has against her is that Trump seems to hate Brussels. Even though I think von der Leyen would be a better partner for Trump, I think he probably prefers to go straight to Berlin,” Gehrke said.

Another challenge for von der Leyen would be breaking the EU away from its notoriously siloed structures – there is little crossover among the union’s different departments – to work with the transactional Trump.

For example, would von der Leyen be prepared to grant US companies amnesty from EU legislation like the Digital Services Act or its carbon adjustment mechanism in exchange for continued support for Ukraine. Could she separate a trade war with the US from a joint plan to confront China on overcapacity?

Such actions would require a departure from the bloc’s prioritising of World Trade Organization rules at every juncture. It would also set von der Leyen on a collision course with member states, many of which are not interested in getting embroiled in a Trump-led clash with Beijing.

In the past, when von der Leyen has tried to emulate the US strategy on China, the results have been patchy at best. For example, an economic security strategy that seeks controls on private companies’ investments in China – the seed of which was planted by Washington – has stalled amid strong resistance from member states.

In the end, Europe faces the same problem as other US allies: Trump’s unpredictability and Washington’s unilateralist turn have sewn doubt about what sort of cooperation would even be possible.

“We don’t know whether the US is interested in rule-making any more,” said one non-European diplomat, whose country is interested in multilateral solutions to counter China’s economic policies, but who was nervous about the November election results.

James Townsend, a former US defence official focused on Europe, cautioned against trying to plan for something that is, effectively, unplannable.

“I don’t think the EU should try to game it out in terms of Trump – it’s like trying to game the stock market,” said Townsend, now an analyst at the Centre for a New American Security.

“It’s not like Trump has policies – he doesn’t. He’s got his list of bad people that he doesn’t like, and that includes the EU. So don’t let him dictate the tune you dance to.

“Do what the EU needs to do, and then deal with Trump as you find out what it is that he’s got in mind.”

Wine lovers at Hong Kong food and drink festival to enjoy wider selection from mainland China

https://www.scmp.com/news/hong-kong/hong-kong-economy/article/3283288/wine-lovers-hong-kong-food-and-drink-festival-enjoy-wider-selection-mainland-china?utm_source=rss_feed

Visitors will have access to a bigger selection of Chinese wines at a coming Hong Kong food and drink festival, with the exhibition area for mainland firms doubling in size compared with last year.

Twenty-two mainland Chinese booths will be among the 300 stalls from dozens of countries and regions at this year’s Wine and Dine Festival spearheaded by the Hong Kong Tourism Board at the Central Harbourfront from Wednesday to Sunday.

Their products will reach an estimated 150,000 visitors, including from overseas, at the five-day mega-event, up from 140,000 last year.

The Chinese exhibition area this year will include 29 renowned wineries. Twenty-two of these wineries are joining the festival for the first time.

The wineries also represent a wider range of regions, spanning Ningxia, Xinjiang, Shaanxi, Sichuan, Guizhou and Yunnan, among 11 in total.

Among them is Xiao Pu Winery, which is reappearing at this year’s festival. It is recognised as a pioneer of Chinese “nomadic winery” and currently partners with grape growers from Ningxia, Yunnan, Sichuan, Hebei, Gansu and Inner Mongolia, crafting wines that embody a natural style.

“Hong Kong stands out as one of the few places where wine merchants can engage with diverse customer segments in a short period, aiding in expanding their clientele. The event’s strong promotional impact helps enhance exposure,” said Victor Choy, director of K Cellars and a distributor of Xiao Pu.

Grace Li Lai-yin, the president of the Hong Kong Wine Chamber of Commerce, said Chinese wines had improved a lot in terms of quality with grading systems. Hong Kong residents had more choice based on gradings, she said.

“With the proximity between Hong Kong and the mainland, coupled with the continuous promotion of Chinese wines by the country, Hong Kong with zero wine duty serves as a great gateway,” Li said.

“For wineries, if Chinese wines become popular in a place as close as Hong Kong, many foreigners in Hong Kong also have the opportunity to taste them. It also enhances the chance to promote Chinese wines to other countries.”

She added many merchants in Hong Kong believed that certain Chinese wines outshone those from other countries due to their price control, which could potentially open up new avenues for industry development in the city.

In the first eight months of this year, Hong Kong’s wine imports totalled HK$4.49 billion, a 14.56 per cent year-on-year decrease. During the period, the city’s re-exports of wine also fell 42.82 per cent to HK$1.25 billion.

In August, the top import origins were France, Australia and Italy, followed by the United States, Britain, New Zealand, Spain, Germany, Chile and Canada.

Nelson Chow Kwok-ming, president of the Hong Kong Sommelier Association, said the impact of Chinese wines had been steadily rising within the industry in recent years, with more people becoming interested.

“Events like the Wine and Dine Festival provide an excellent opportunity for residents and tourists to taste a variety of Chinese wines at affordable prices, experiencing the unique flavours from different wine-producing regions all in one place,” Chow said.

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China shipbuilder shores up yuan’s use in trade via landmark containership deal

https://www.scmp.com/economy/china-economy/article/3283253/china-shipbuilder-shores-yuans-use-trade-landmark-containership-deal?utm_source=rss_feed

A prominent state-owned Chinese shipbuilder known for being at the centre of the nation’s naval modernisation has signed a deal that will help advance the yuan’s internationalisation while further consolidating China’s leading role in containership manufacturing.

China’s Hudong-Zhonghua Shipbuilding, based in Shanghai, has entered into an agreement with Hong Kong-based containership lessor Seaspan Corporation for the construction of six containerships, each with a capacity of 13,600 TEUs (20-foot equivalent units), according to a statement posted on social media on Friday.

The order also marked the first such deal made in yuan, the statement added, without providing details of the purchase price. International shipbuilding contracts are usually settled in US dollars.

“It is one of the few large shipbuilding orders signed directly by foreign shipowners with Chinese shipbuilding companies using this new payment method,” the statement said. “It is of great significance to promote the internationalisation of the yuan.”

A subsidiary of China State Shipbuilding, Hudong-Zhonghua said the container ships were designed with sustainability and low-energy use in mind. The vessels, measuring 336 metres (1,002 feet) in length, 51 metres (167 feet) in width and 30.2 metres (99 feet) in depth, are due for delivery between 2026 and 2028, the statement said.

The yuan’s use in settling the transaction will help Hudong-Zhonghua reduce foreign-exchange risks, enhance profitability and improve market competitiveness, the company added. Financing costs will also be lowered for shipowners, and it will lift efficiency in trade, according to the statement.

Despite the yuan lacking full convertibility, China has stepped up efforts to promote the Chinese currency’s use in international trade in recent years.

In August, the yuan retained its position as the fourth-most-active currency for global payments by value, with a share of 4.69 per cent compared with the world-leading US dollar’s 49.07 per cent, according to the latest data from the Society for Worldwide Interbank Financial Telecommunication (Swift), the world’s largest interbank messaging service.

In terms of global shipbuilding orders, China has gradually pulled ahead of South Korea amid intense competition between their respective shipyards.

From January to September, China completed 36.34 million deadweight tons (DWT) in shipbuilding, an 18.2 per cent year-on-year increase, while securing 87.11 million DWT in new orders, up 51.9 per cent, according to data from the Ministry of Industry and Information Technology (MIIT) on October 10.

By the end of September, the total accumulated orders reached 193.3 million DWT, a year-on-year rise of 44.3 per cent, the MIIT said.

During this period, China accounted for 55.1 per cent of global ship completions, 74.7 per cent of new orders, and 61.4 per cent of total accumulated orders, in terms of DWT, the ministry added.

China auto company VP faces backlash after video shows him eating hotpot in car

https://www.scmp.com/news/people-culture/trending-china/article/3282756/china-auto-company-vp-faces-backlash-after-video-shows-him-eating-hotpot-car?utm_source=rss_feed

An auto company senior executive in China sparked significant backlash after sharing a video of himself enjoying a hotpot meal inside a new car model from his firm, aiming to promote its multipurpose use and air filtration system.

Yang Dacheng, Vice-President of Zeekr Intelligent Technology – a publicly listed electric car manufacturer controlled by Geely Auto – shared a video on Weibo on October 11, featuring him and his team seated around a small table with an electric hotpot and various dishes inside the new Zeekr MIX model.

The video depicted Yang and his guests rotating the front seats to face the back seats, setting up an expandable table between them, and preparing a hotpot meal complete with tripe, crispy pork, vegetables, and four dipping sauces.

Yang emphasised the car’s efficient and comfortable air conditioning, even suggesting that it was spacious enough to play mahjong inside.

He also stated: “Product development should always incorporate genuine user feedback, and our collaboration with users during the design of the Zeekr MIX has been spot on.”

At the Beijing International Automotive Exhibition in April, where the Zeekr MIX model had its global debut, advertisements began highlighting unique features such as transforming into a dining area and allowing customers to enjoy hotpot inside, emphasising the car’s spacious interior as a major selling point.

This situation is not isolated, as the highly competitive auto industry has forced domestic carmakers to standardise premium features like refrigerators and sofa-like seats while resorting to gimmicky marketing strategies to capture consumer attention.

Last year, to illustrate the versatility of the back seat in its LS6 model, Liu Tao, co-CEO of IM Motors, famously prepared dumplings there, igniting significant controversy.

Similarly, Skyworth Auto’s founder, Huang Hongsheng, has touted the health benefits of driving a Skyworth car, suggesting that it could extend one’s lifespan by 30 years by alleviating high blood pressure, enhancing immune function, and even curing diarrhoea.

During the 20th Summer Annual Conference of Yabuli Entrepreneurs 2024, Huang even boldly claimed: “From a traditional Chinese medicine perspective, the small, balanced air environment of a car is ideal. I take a one-hour nap in my Skyworth every day, and all my sub-health problems have disappeared.”

These marketing stunts, including Yang’s hotpot video, have triggered widespread criticism.

“Who came up with this bizarre idea to eat hotpot inside a car? Use some common sense – would you actually cook hotpot in your own car? How would you eliminate the smell and oil splatters?” one person questioned.

“I wouldn’t even allow someone to smoke in my car, let alone have a hotpot meal. The smell would permeate everything, and if oil splatters on the interior, you’ll regret it,” another echoed.

On October 13, Yang responded to the online backlash with a follow-up video on his social media platforms.

He explained: “The original intention was to showcase the diverse scenarios in which the Zeekr MIX can be used. I did not anticipate it would spark such extensive discussion. Thanks for all the suggestions and feedback.”

Regarding concerns about hotpot odours, Yang described it as part of a “new camping experience”, explaining that the car is equipped with a robust air filtration system to address such issues.

This response stirred even more controversy, with many criticising the hotpot set-up as a gimmick.

“All they do is focus on gimmicks and nonsense, ignoring the fundamentals. These pointless stunts are even spreading to the new energy car industry. It’s disastrous!” someone else wrote.

US reacts to China-India border thaw; experts say the dispute is not over yet

https://www.scmp.com/news/china/diplomacy/article/3283310/us-reacts-china-india-border-thaw-experts-say-dispute-not-over-yet?utm_source=rss_feed

Washington is closely monitoring developments following New Delhi’s announcement of an agreement with Beijing on patrolling their 3,000km (1,860 miles) disputed border.

“We are closely following these developments,” a US State Department spokesperson told the South China Morning Post via email on Tuesday, adding that the US did not have details on the “reported arrangement.”

The department did not say if New Delhi had informed Washington – a key geopolitical partner – about the agreement, which Beijing also has yet to confirm.

Indian Foreign Minister Subrahmanyam Jaishankar told a media conference on Monday that “the disengagement process with China has been completed” and both sides had “gone back to where the situation was in 2020”.

The announcement represents a significant breakthrough in flaring border tensions following the 2020 clash in the Himalayas that resulted in the deaths of at least 20 Indian and four Chinese soldiers. More than 30 rounds of negotiations have taken place over the past four years.

Since the 2020 clashes, India has strengthened its ties with the US to counter what both nations view as Beijing’s aggressive actions against its neighbours in the Indo-Pacific region.

This deepening relationship has been highlighted by the signing of defence cooperation agreements, including reports of real-time intelligence sharing regarding the India-China disputed border.

New Delhi is also a member of the US-led Quad grouping, which includes Australia and Japan, seen by China as a “threat” to “peace” in the region.

However, scepticism has emerged in Washington regarding New Delhi’s growing closeness to the Kremlin, particularly amid pressure to isolate Putin from the West following Russia’s invasion of Ukraine.

Moscow’s friendly relations with both Beijing and New Delhi were evident when Foreign Minister Wang Yi and Indian National Security Adviser Ajit Doval discussed the border dispute in September during a high-level Brics gathering in St. Petersburg.

The deal with Beijing was made public by New Delhi just one day before Russian President Vladimir Putin hosted the leaders of the Brics grouping of emerging markets – the name is an acronym for Brazil, Russia, India, China and South Africa – in Kazan.

Chinese President Xi Jinping and Indian Prime Minister Narendra Modi will both be there at the summit, which runs from October 22-24.

Indian Foreign Secretary Vikram Misri on Monday said that Modi is expected to have “a few bilateral meetings” on the sidelines, raising expectation of a Xi-Modi bilateral. The two leaders briefly met alongside last year’s Brics summit in South Africa.

Farwa Aamer, a South Asia expert in the US, said that while Beijing’s strained relations with New Delhi are a key factor in the deepening of US-India ties, the partnership is driven by several other important considerations.

Aamer, director of the South Asia Initiatives at New York think tank the Asia Society, said the issues between China and India are also far from resolved. The agreement was a “step towards normalcy if not a full-blown reset just as yet, for Sino-Indian ties”.

Highlighting years of diplomatic exchanges leading up to the deal, she added that more developments might follow if a Modi-Xi bilateral meeting happens on the sidelines of the Brics summit.

However, Aamer emphasised that the breakthrough “doesn’t necessarily reflect the effectiveness of Brics or any influence on conflict resolution”.

“China has been a factor that has pushed New Delhi and Washington closer, but now they have their own partnership anchored on a number of factors, so I don’t see an impact on the US-India dynamic,” she said.

Michael Kulegman of the Wilson Centre agreed, saying “China won’t stop being a strategic competitor to India, and New Delhi’s broader concerns about Chinese power and provocations won’t abate, just because there’s a border accord”.

He added that Washington “has no interest in another India-China crisis and the destabilising impacts that could have”.

According to Kulegman, improved ties between India and China would also make Brics “more effective”, but he stressed that the deal “is not necessarily a precursor to a full-fledged bilateral detente”.

The Brics grouping was co-founded by China, Russia, India, Brazil and South Africa in 2009 as a non-Western bloc o work together on economic and political issues to insulate Western influence and pressures. In January, the group expanded to include Egypt, Ethiopia, Iran, Saudi Arabia and the United Arab Emirates.

When asked on Monday about Putin using the summit as an attempt to show the West that he still has friends, White House national security spokesman John Kirby said that the US does not view Brics as a “threat”.

“These countries can decide for themselves who they want to associate with and especially how they want to be economically linked with one another,” he said.

India announces deal with China on patrolling shared border, sparking hope of better ties

https://www.scmp.com/news/china/diplomacy/article/3283289/india-announces-deal-china-patrolling-shared-border-sparking-hope-better-ties?utm_source=rss_feed

India announced it has reached a deal with China on patrolling their shared border ahead of the Brics summit, sparking hope that the uneasy neighbours could lower tensions in their four-year military stand-off and improve ties.

Indian Foreign Secretary Vikram Misri told reporters on Monday that the countries had come to an agreement on patrolling arrangements along the Line of Actual Control (LAC) between India-controlled eastern Ladakh and China-controlled Aksai Chin.

“As a result of the discussions that have taken place over the last several weeks, an agreement has been arrived at on patrolling arrangements along the Line of Actual Control in the India-China border area,” Misri was quoted as saying.

“This is leading to disengagement and eventually a resolution of the issues that had arisen in these areas in 2020.”

Beijing has not immediately confirmed the agreement.

China and India share thousands of kilometres of undetermined border along the Himalayas. An unofficial LAC serves as a loose ceasefire line after the two sides fought a brief border war in 1962 and conflicts have erupted from time to time over the years.

The most serious skirmish broke out on June 15, 2020, in which at least four Chinese and 20 Indian soldiers were killed in cold-weapon combat in the Galwan Valley.

Since then, both sides have deployed armed forces to the frontline. Amid the dispute and friction, Beijing and New Delhi have embarked on marathon talks through diplomatic and military-to-military channels.

The strain has affected economic cooperation and other issues between the world’s two most populous nations.

In particular, New Delhi has tightened restrictions on Chinese investments in India.

This week’s development culminated several rounds of negotiations in recent weeks carried out by diplomatic and military interlocutors, Misri said.

It concerns patrolling arrangements in the hotspots of Depsang and Demchok, according to Indian media reports.

Misri’s announcement came just a day before Indian Prime Minister Narendra Modi set off to attend a summit of Brics, an association of leading emerging markets, from October 22 to 24 in Kazan, Russia.

Modi is expected to meet with Chinese President Xi Jinping.

But when asked whether the leaders would hold bilateral talks on the sidelines of the Brics summit, Misri said the possibility was still being discussed.

Brics at its founding in 2009 comprised Brazil, Russia, India and China. It has expanded to include South Africa, Egypt, Ethiopia, Iran and the United Arab Emirates.

US unveils new rules to block China, Russia and Iran from accessing bulk US data

https://www.scmp.com/news/world/united-states-canada/article/3283291/us-unveils-new-rules-block-china-russia-and-iran-accessing-bulk-us-data?utm_source=rss_feed

The US Justice Department on Monday proposed new rules to protect federal government data or Americans’ bulk personal data from getting into the hands of countries such as China, Iran and Russia by placing new limits on certain business transactions.

The proposal, which was previewed in March, implements an executive order issued earlier this year by US President Joe Biden which aims to keep foreign adversaries from using accessible American financial and genomic data and health data for cyberattacks, espionage and blackmail.

In addition to China, Russia and Iran, the rule would also apply to Venezuela, Cuba and North Korea.

Washington has been trying to stem the flow of American personal data to China, part of a years-long struggle over trade and technology.

In 2018, a US panel that reviews foreign investments for potential national security threats rejected a plan by China’s Ant Financial to acquire US money transfer company MoneyGram International, because of concerns over safety of data that can be used to identify US citizens.

The officials said transactions will be banned with data brokers who know the information will end up in “countries of concern”, as will the transfer of any data on US government staff.

Monday’s proposal for the first time gave more specific details about the types and amounts of data that cannot be transferred, including human genomic data on over 100 Americans or personal health or financial data on more than 10,000 people.

The proposal would also bar the transfer of precise geolocation data on over 1,000 US devices.

The rule would allow the Justice Department to enforce compliance both through criminal and civil penalties.

US officials told reporters on Monday that Chinese apps such as TikTok could run afoul of the proposal if they transferred sensitive data from US users to a Chinese parent company.

China plans live-fire drills in Taiwan Strait after US and Canada warships transit there

https://www.scmp.com/news/china/military/article/3283292/china-plans-live-fire-drills-taiwan-strait-after-us-and-canada-warships-transit-there?utm_source=rss_feed

China said it would carry out live-fire drills in the Taiwan Strait on Tuesday, two days after US and Canadian warships sailed through the contentious waterway following Beijing’s massive military exercise a week ago.

The live-fire drills are to take place in a limited area in the waters near Niushan Island from 9am to 1pm local time, the official Fujian Daily reported, citing a notice from the Maritime Safety Administration (MSA) on Pingtan, an island off the coast of Fujian province in southeastern China.

Sitting east of Pingtan Island, Niushan Island is only 165 kilometres (102 miles) from Taipei, the capital city of Taiwan.

Ships would be prohibited from entering the area, the notice added.

Tuesday’s drills would come only two days after the USS Higgins, an Arleigh Burke-class guided-missile destroyer, and HMCS Vancouver, a Halifax-class frigate, made transit through the strait on Sunday, a move Beijing denounced as “disturbing the situation and undermining peace and stability” in the region.

Liu Xi, the spokesperson for the Eastern Theatre Command of the People’s Liberation Army, said the PLA was “on high alert” and would “resolutely defend national sovereignty and security and regional peace and stability”.

The US Pacific Command said on Sunday that the ships conducted a “routine Taiwan Strait transit through waters where high-seas freedom of navigation and overflight apply in accordance with international law”.

Beijing regards Taiwan, a self-ruled island, as part of China, to be eventually united with the mainland, by force if necessary.

The US, like most countries, does not recognise the island as independent, but is opposed to any attempt to reunify the island by force and has remained Taiwan’s staunchest backer and top arms supplier.

More to follow

US adds 6 more Chinese companies to export blacklist for boosting Iran, PLA

https://www.scmp.com/news/china/diplomacy/article/3283299/us-adds-6-more-chinese-companies-export-blacklist-boosting-iran-pla?utm_source=rss_feed

The US announced on Monday it was adding six Chinese companies to an export blacklist for supporting the development of Iran’s weapons of mass destruction as well as the modernisation of China’s military.

“We will continue to cut off entities that seek to evade our controls and act contrary to US national security,” said Thea D. Rozman Kendler, the US assistant secretary of commerce for export administration.

“Programmes such as Iran’s WMD programme, their unmanned aerial-vehicle programme and Pakistan’s ballistic missile programme pose significant threats to the national security of the United States and will not be aided by US technologies.”

Companies are added to the trade-restriction register known as the Entity List when Washington deems them a threat to US national security or foreign policy.

Once placed on the list, companies cannot receive American goods and technology without a special license, which is likely to be denied.

The Commerce Department added Beijing Moreget Creative Technology for acquiring US-origin items related to aviation-simulation technology in support of China’s military modernisation.

Hong Kong-based Small Leopard Electronics, along with the closely connected company Shenzhen Dragonfly Supply Chain, got added because Small Leopard repeatedly engaged in “dilatory and evasive conduct” in providing information to the Commerce Department during end-use checks.

According to the department, Small Leopard was party to a transaction with an end user that supplied goods to an Iranian procurement network.

Small Leopard was previously added to Commerce’s Unverified List, which includes companies for which US export-control officers cannot complete on-site visits to determine whether they can be trusted to receive US-origin technology and goods.

Three other companies – Detail Technology (HK), L-Tong Electronic Technology and Shenzhen Jiachuang Weiye Technology – were added for procuring or attempting to procure US-origin items for Iran’s WMD and drone-development programmes.

Beijing has repeatedly urged Washington to stop targeting specific companies with what it has called “discriminatory and unfair measures”.

In total, 26 entities joined the list on Monday. Aside from the Chinese companies, one was added from Egypt, 16 from Pakistan and three from the United Arab Emirates.

Two companies came off the list, including China’s Hefei Bitland Information Technology Co, which the department says has been dissolved.

The Anhui province-based computer-parts maker was added to the list in 2020 for allegedly contributing to forced labour practices involving Uygurs and other Muslim minority groups in the Xinjiang Uygur autonomous region.

Commerce also removed Canada-based networking-equipment company Sandvine, noting the company’s “significant’’ changes to its corporate governance and business practices to protect human rights.

US court awards Bahamas firm US$1.6 billion in case against China Construction America

https://www.scmp.com/news/china/article/3283301/us-court-awards-bahamas-firm-us16-billion-case-against-china-construction-america?utm_source=rss_feed

A New York court has awarded a Bahamas-based property-management company US$1.6 billion against China Construction America in a long-running legal dispute over a massive tourism project in the former British colony, according to a decision released on Monday.

The case won by BML Properties Ltd involved a disagreement over Baha Mar, a 1,000-acre (404.7 hectare) project that included three hotels totalling some 2,200 rooms, more than 280 private residences, a 9,300-square-metre (100,104-square-foot) casino and a golf course designed by famed golfer Jack Nicklaus.

The project was ultimately placed in bankruptcy and later sold to its current owner, Chow Tai Fook Enterprises, a Hong Kong conglomerate.

A central question in the trial overseen by New York Supreme Court Justice Andrew Borrok was whether BML’s US$1.5 billion losses resulted from its excessive debt or from construction delays.

The Bahamas developer “more than met” its burden of proof that construction delays were to blame, the court ruled, with company representatives committing “at least four instances of fraud”.

The result, Borrok concluded, was that BML suffered damages amounting to its entire US$845 million investment. Once interest charges dating back to 2014 were added the judgment ballooned to US$1.6 billion.

CCA reportedly plans to appeal. It did not immediately respond to a request for comment.

CCA is an American subsidiary of state-owned China State Construction Engineering Corporation, the mainland’s largest construction group.

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

The court also found that board members of the Chinese construction company failed to take their responsibility seriously and were “hopelessly conflicted” given that the firm were secretly working to acquire a competing hotel.

According to court documents, China Construction purposely slowed down the Baha Mar project even as officials told BML that the project would open on schedule by March 27, 2015, “with the knowledge that if that date was missed it would be disastrous”.

At one point, China Construction asked BML for US$54 million to pay subcontractors that, the court found, was actually used to buy the competing British Colonial Hilton hotel in Nassau.

Baha Mar, meaning “shallow water”, was announced in 2010 with financing by the China Exim Bank, construction by CCA and 70 per cent of the labour brought in from the mainland.

Groundbreaking took place in 2011. Following the bankruptcy, Chow Tai Fook bought the project in December 2017.

“I first conceived of Baha Mar more than 20 years ago, only to see it ripped out of my hands at the brink of opening by CCA,” said Sarkis Izmirlian, chairman and CEO of Baha Mar’s original developer, in a statement on Monday.

Izmirlian said the case proved that China Construction secretly cut hundreds of workers from the project in the critical final months before the grand opening, “diverted resources and key personnel to Panama to start a new project rather than finish Baha Mar”.

Court documents painted a picture of increasingly anxious CCA board member Ning Yuan asking for the firm’s parent company in Beijing to help as delays mounted before the 2015 opening, which would subject it to fines of US$250,000 a day for failing to meet the promised deadline.

The judge cited as evidence of fraud Yuan’s warning of “catastrophic losses” while the CCA board was reassuring BML that the project was on track.

“The production situation of the project is extremely severe, and if the situation cannot be fundamentally reversed, it will cause irreparable and catastrophic losses,” Yuan wrote.

The parent company should take “urgent measures immediately, quickly organise the dispatch of the additional labour force and dispatch skilled workers and experienced management personnel to the site for the final shock work,” Yuan added.

This, the CCA board member continued, would “ensure that the project’s scheduled target of full opening on March 27, 2015 can be achieved”.

Izmirlian on Monday voiced satisfaction over the ruling.

“We are grateful to have finally had our day in the US judicial system,” he said. “And we intend to proceed with the enforcement of the judgment in an equally thoughtful and prudent manner.”

China takes bold step in turning public data into gold mine like land sales

https://www.scmp.com/opinion/china-opinion/article/3283233/china-takes-bold-step-turning-public-data-gold-mine-land-sales?utm_source=rss_feed

Local governments across China are sitting on a vast trove of data collected over the years, but have little idea on how to turn these assets into tradable commodities. In the famous words of former paramount leader Deng Xiaoping, local authorities are “crossing the river by feeling the stones” in terms of turning data into valuable assets.

That difficult journey began in 2020 when the Communist Party designated data as another production factor along with land, labour, capital and technology. The goal was to set up a “market-based” mechanism that would allocate data efficiently through the forces of supply and demand, just like other resources.

But there is still a huge gap between vision and reality, as fundamental questions remain unanswered.These include who owns public data, what data can be put on sale, where can data be traded, and how such trades can be conducted.

The road map became clearer this month, after the Central Committee of the Communist Party issued a policy document on “accelerating development and use of public data resources”, which provides political support and guidelines to local governments.

According to the document, all public data generated in the process of public services are “strategic resources” for the nation. This paves the way for local governments to control and sell data in a similar way to land sales. Local governments in China generate revenue by selling to commercial developers the rights to use “publicly owned land”. As such, it would be possible in a Chinese public data market to recognise local governments as the ultimate owner of data.

Beijing’s encouragement may be music to the ears of local officials who are struggling with plummeting land sales. Many local governments have started to discuss the idea of including data in the balance sheets of local government financing vehicles so that they can borrow more. Some even hope that data can replace land as an inexhaustible fiscal asset.

For local officials, it would be ideal to sell public data like land. Local authorities would serve as the sole vendors of various tranches of public data, while commercial buyers bid for data through state-run platforms or exchanges, just as property developers bid for different plots of land.

Revenue generated from data sales can be used to improve public service and support community development, which can lead to generating higher-quality data for sale. In a broad sense, China can find a balance between protecting individual interest and using data efficiently. This way, China can develop a unique data management model that is different from the European concept of treating data ownership as human rights, or the American practice of allowing big companies to dictate data use.

There are many things that have to be done before such a market can function, because the use of data is fundamentally different from the use of land. But local governments are taking initiatives.

The government of southern Guangdong province, for example, published a draft data regulation this month proposing the idea of “authorised public data operations”, which would allow the provincial and municipal governments to designate non-governmental entities to run public data as a business.

The government’s monopoly over public data can have far-reaching implications. For instance, it would mean that a Chinese artificial intelligence (AI) firm could pay “royalties” to state data agencies to access certain data for training its AI model.

China has made steady progress in achieving its ambitions of turning public data into a government revenue source. Beijing has demanded in its latest document that the country develop rules about public data resources usage by next year.