Mistral点评

• Chinese leader Xi Jinping urges Brics to lead ‘urgent’ international finance reform
• Xi Jinping and Narendra Modi meet, two days after a China-India border deal
• Efforts by Russia, Iran and China to sway US voters may escalate, new Microsoft report says
• China’s space programme targeted by ‘audacity’ of foreign agents, anti-spy agency warns
• Will Vietnam keep ‘nuanced’ China policy amid report of radar system on disputed island?
• China’s Canton Fair, barometer of foreign trade, shows US, EU buyers may lose interest
• Chinese smartphone giant Oppo enters tech pact with top EV maker BYD, acquires AI start-up
• Why does China punish foreigners for taking drugs in other places (even where it’s legal)?
• China woman arrested for US$210,000 scam after undergoing plastic surgery to evade capture
• When it comes to China, Britain must play smart, not be emotional
• Guangdong, China’s powerhouse province, loses pace with peers as property crisis bites
• Chinese solar stocks jump on rumours Beijing will stifle excess supply, price war
• Hong Kong’s South China Morning Post scoops 3 awards at digital media competition
• China cracks down on ‘uncivilised’ online puns used to discuss sensitive topics
• Staff at pricey Japan boutique kneel in apology after China woman angered by ‘rude’ service
• Will stimulus package help China’s local governments pay bills?
• Could Ugandan rail deal convince China to help get Kenyan project back on track?
• China’s stock markets could enjoy ‘instant’ boost from 2 trillion yuan fund: think tank
• Tim Cook meets China regulator in Beijing but no final word on Apple Intelligence
• Just add air and water: China lab finds eco-friendly pathway to chemical production
• China Resources Beverage shares rise in Hong Kong trading debut as IPO momentum returns
• China and Vatican agree to extend deal on bishop appointments for 4 more years
• Vietnamese lobsters claw back to prominence in China after temporary dip

Chinese leader Xi Jinping urges Brics to lead ‘urgent’ international finance reform

https://www.scmp.com/news/china/diplomacy/article/3283579/chinese-leader-xi-jinping-urges-brics-lead-urgent-international-finance-reform?utm_source=rss_feed

Chinese President Xi Jinping called on Wednesday for the Brics nations to lead the “urgent” reform of the international financial architecture to better reflect the global economy.

He told the bloc’s annual summit it should also drive reform of global governance and cooperate further in innovation and green development.

The meeting in the Russian city of Kazan is the first since it added five new members earlier this year and Xi confirmed the bloc will soon invite more “partner countries” to join.

“Under the current circumstances, the urgency of reforming the international financial architecture is prominent,” Xi said, according to state news agency Xinhua.

“The Brics countries should play a leading role, deepen financial cooperation, promote the interconnection of financial infrastructure, maintain high-level financial security, expand and strengthen the New Development Bank, and promote the international financial system to better reflect changes in the world economic landscape.”

Also on Wednesday, Xi met the Indian Prime Minister Narendra Modi for their first official talks since a deadly clash between the two countries’ troops in June 2020.

Earlier this week the two countries took a significant step towards easing tensions by announcing a patrol agreement along their disputed border.

“The two countries should step up communications and cooperation, handle conflicts properly and mutually support each other’s development dreams,” Xi told Modi, according to state media.

On Tuesday Xi held one-on-one meetings with his host Vladimir Putin – discussing settlement infrastructure, according to Russian state broadcaster RIA Novosti – as well as his Laotian counterpart Thongloun Sisoulith.

Xi did not immediately respond to calls from Moscow to develop a Brics payment settlement system, which has become a priority for Russia following its exclusion from the main international payment messaging network Swift following the start of the war in Ukraine in 2022.

Brics – named after the founding members Brazil, Russia, India and China plus South Africa – expanded to cover more than 40 per cent of the world’s population after Egypt, Ethiopia, Iran, Saudi Arabia and the United Arab Emirates joined earlier this year.

The bloc also represents more than a quarter of global GDP – offering China a potential path to challenge the current Western-dominated international order.

Chinese businesses and organisations have been subject to numerous US-led sanctions over the past few years over national security concerns. Sanctions levied against Russia over its war in Ukraine have also affected trade settlements with China.

Xi told the summit that China wanted to work with fellow members to promote green industry and clean energy.

“Green is the background colour of this era. Brics countries should actively integrate into the global green and low-carbon transformation,” he said.

He also said Brics members should practise “true multilateralism”, including the reform of global governance with fairness and justice in mind, and highlighted the importance of representing developing countries.

Last year he told the summit in Johannesburg that international rules must be “written and upheld by all countries based on the purposes and principles of the United Nations Charter, rather than dictated by those with the strongest muscles or the loudest voice”.

He also called for an “innovative Brics”, and said China was ready to work with the bloc to “release the energy of AI”.

He also announced the country would set up a series of international initiatives focusing on areas such as deep ocean resources, special economic zones, industry and digital eco-cooperation, saying all nations were welcome to participate.

He also said Beijing will implement the Brics Digital Education Capacity Building Plan and set up 10 overseas learning centres in the next five years to train teachers and education managers.

Xi also called for members to build a “peaceful Brics”, which includes a de-escalation in Ukraine, an immediate ceasefire in Gaza and a “lasting solution to the Palestinian issue”.

Nearly two dozen world leaders are attending the three-day summit to discuss what Russia calls “pressing issues on the global and regional agenda”.

Wednesday’s talks covered areas such as security, the economy and finance, as well as cultural and humanitarian issues.

According to the Kremlin, representatives from 40 countries will gather on the final day of the summit to discuss sustainable development and other issues.

Xi Jinping and Narendra Modi meet, two days after a China-India border deal

https://www.scmp.com/news/china/diplomacy/article/3283586/xi-jinping-and-narendra-modi-meet-two-days-after-china-india-border-deal?utm_source=rss_feed

China and Indian should manage their differences properly, Chinese President Xi Jinping told India Prime Minister Narendra Modi on Wednesday, in their first face-to-face meeting since the bilateral relationship was badly strained by a deadly border clash four years ago.

“It is important for both sides to have more communication and cooperation, properly handle differences and disagreements, and facilitate each other’s pursuit of development aspirations,” Xi told Modi on the sidelines of the Brics summit in Kazan, Russia.

“It is also important for both sides to shoulder our international responsibilities, set an example for boosting the strength and unity of developing countries, and contribute to promoting multi-polarisation and democracy in international relations,” he said.

In a post on his X account after the meeting, Modi wrote that India-China relations were “important for the people of our countries, and for regional and global peace and stability”.

“Mutual trust, mutual respect and mutual sensitivity will guide bilateral relations,” he said.

The meeting came two days after the announcement that China and India had reached an agreement on patrolling their shared Himalayan border, where the two sides had a deadly clash in June 2020, de-escalating a four-year military stand-off.

“The two leaders welcomed the agreement reached between the two sides through sustained dialogue over the last several weeks in diplomatic as well as military channels,” Indian Foreign Secretary Vikram Misri said in a statement.

“PM Modi underscored the importance of not allowing differences on boundary-related matters to disturb peace and tranquillity on our borders. The two leaders noted that the special representatives on the India-China boundary question have a critical role to play in the resolution of the boundary question and for the maintenance of peace and tranquillity in the border areas.”

Brics – the economic association named after the founding members Brazil, Russia, India and China plus South Africa – has been on an expansion path, with Egypt, Ethiopia, Iran, Saudi Arabia and the United Arab Emirates joining the bloc this year.

Xi and Modi last met in person in 2019, on the sidelines of another Brics summit in Brazil.

Xi and Modi met briefly at the 2022 Group of 20 summit in Bali, Indonesia, and the 2023 Brics summit in Johannesburg, South Africa, but did not hold formal talks during either event.

Xi skipped the G20 summit New Delhi hosted in 2023, which was seen as a signal that Beijing and New Delhi remained at loggerheads over the border issues.

The relationship between the world’s two most populous nations turned sour after the worst border conflict in almost six decades on the unresolved Himalayan border on June 15, 2020. At least four Chinese and 20 Indian soldiers were killed in the engagement in the Galwan Valley between India-controlled Ladakh and China-controlled Aksai Chin.

As heavy military forces were deployed to confront each other along the border, business and other exchanges were also affected for the past four years. In particular, New Delhi tightened its policies regarding Chinese investments.

Efforts by Russia, Iran and China to sway US voters may escalate, new Microsoft report says

https://apnews.com/article/russia-china-iran-disinformation-election-ef9b5155349d496e00513e7b3bc3fc07FILE - The Microsoft logo in Issy-les-Moulineaux, outside Paris, France, April 12, 2016. The company said Wednesday that Russian operatives are doubling down on fake videos to smear Vice President Kamala Harris’ campaign, while Chinese-linked social media campaigns are maligning down-ballot candidates who are critical of China. Meanwhile, Iranian actors who allegedly sent emails aimed at intimidating U.S. voters in 2020 have been surveying election-related websites and major media outlets, the tech giant said. (AP Photo/Michel Euler, File)

2024-10-23T16:34:00Z

NEW YORK (AP) — Foreign adversaries have shown continued determination to influence the U.S. election –- and there are signs their activity will intensify as Election Day nears, Microsoft said in a report Wednesday.

Russian operatives are doubling down on fake videos to smear Vice President Kamala Harris’ campaign, while Chinese-linked social media campaigns are maligning down-ballot candidates who are critical of China, the company’s threat intelligence arm said Wednesday.

Meanwhile, Iranian actors who allegedly sent emails aimed at intimidating U.S. voters in 2020 have been surveying election-related websites and major media outlets, raising concerns they could be preparing for another scheme this year, the tech giant said.

The report serves as a warning – building on others from U.S. intelligence officials – that as the nation enters this critical final stretch and begins counting ballots, the worst influence efforts may be yet to come. U.S. officials say they remain confident that election infrastructure is secure enough to withstand any attacks from American adversaries. Still, in a tight election, foreign efforts to influence voters are raising concern.

Microsoft noted that some of the disinformation campaigns it tracks received little authentic engagement from U.S. audiences, but others have been amplified by unwitting Americans, exposing thousands to foreign propaganda in the final weeks of voting.

Russia, China and Iran have all rejected claims that they are seeking to meddle with the U.S. election.

“The presidential elections are the United States’ domestic affairs. China has no intention and will not interfere in the US election,” the Chinese Embassy said in a statement.

“Having already unequivocally and repeatedly announced, Iran neither has any motive nor intent to interfere in the U.S. election; and, it therefore categorically repudiates such accusations,” read a statement from Iran’s mission to the United Nations.

A message left with the Russian Embassy was not immediately returned on Wednesday.

The report reveals an expanding landscape of coordinated campaigns to advance adversaries’ priorities as global wars and economic concerns raise the stakes for the U.S. election around the world. It details a trend also seen in the 2016 and 2020 elections of foreign actors covertly fomenting discord among American voters, furthering a divide in the electorate that has left the nation almost evenly split just 13 days before voting concludes.

“History has shown that the ability of foreign actors to rapidly distribute deceptive content can significantly impact public perception and electoral outcomes,” Clint Watts, general manager of the Microsoft Threat Analysis Center, said in a news release. “With a particular focus on the 48 hours before and after Election Day, voters, government institutions, candidates and parties must remain vigilant to deceptive and suspicious activity online.”

The report adds to previous findings from Microsoft and U.S. intelligence that suggest the Kremlin is committed to lambasting Harris’ character online, a sign of its preference for another Donald Trump presidency.

Russian actors have spent recent months churning out both AI-generated content and more rudimentary spoofs and staged videos spreading disinformation about Harris, Microsoft’s analysts found.

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Among the fake videos were a staged clip of a park ranger impersonator claiming Harris killed an endangered rhinoceros in Zambia, as well as a video sharing baseless allegations about her running mate Tim Walz, which U.S. intelligence officials also attributed to Russia this week. Morgan Finkelstein, national security spokeswoman for the Harris campaign, condemned Russia’s efforts.

Another Russian influence actor has been producing fake election-related videos spoofing American organizations from Fox News to the FBI and Wired magazine, according to the report.

China over the last several months has focused on down-ballot races, and on general efforts to sow distrust and democratic dissatisfaction. A Chinese influence actor widely known as Spamouflage has been using fake social media users to attack down-ballot Republicans who have publicly denounced China, according to Microsoft’s analysts.

Candidates targeted have included Rep. Barry Moore of Alabama, Sen. Marsha Blackburn of Tennessee, and Rep. Michael McCaul of Texas, all of whom are running for reelection, the report said. The group also has attacked Sen. Marco Rubio of Florida.

Moore, McCaul and Rubio sent emailed statements warning that China’s aggression against American political candidates and its efforts to weaken democracy need to be taken seriously. A spokesperson for Blackburn didn’t immediately provide comment.

In its statement, the Chinese embassy said U.S. officials, politicians and media “have accused China of using news websites and social media accounts to spread so-called disinformation in the US. Such allegations are full of malicious speculations against China, which China firmly opposes.”

Iran, which has spent the 2024 campaign going after Trump with disinformation as well as hacking into the former president’s campaign, hasn’t been stymied by ongoing tension in the Middle East, according to the Microsoft report.

Quite the opposite, groups linked to Iran have weaponized divided opinions on the Israel-Hamas War to influence American voters, the analysts found. For example, an Iranian operated persona took to Telegram and X to call on Americans to sit out the elections due to the candidates’ support for Israel.

Microsoft’s report also said it observed an Iranian group compromising an account of a notable Republican politician who had a different account targeted in June. The company would not name the individual but said it was the same person who it had referenced in August as a “former presidential candidate.”

The report also warned that the same Iranian group that allegedly posed as members of the far-right Proud Boys in intimidating emails to voters in 2020 has been scouting swing-state election-related websites and media outlets in recent months. The behavior could “suggest preparations for more direct influence operations as Election Day nears,” Watts said.

Iran’s mission to the United Nations said in a statement that the allegations in the report “are fundamentally unfounded, and wholly inadmissible.”

Even as Russia, China and Iran try to influence voters, intelligence officials said Tuesday there is still no indication they are plotting significant attacks on election infrastructure as a way to disrupt the outcome.

If they tried, improvements to election security means there is no way they could alter the results, Jen Easterly, director of the U.S. Cybersecurity and Infrastructure Security Agency, told The Associated Press earlier this month.

Intelligence officials on Tuesday also warned that Russia and Iran may try to encourage violent protests in the U.S. after next month’s election, setting the stage for potential complications in the post-election period.

___

The Associated Press receives support from several private foundations to enhance its explanatory coverage of elections and democracy. See more about AP’s democracy initiative here. The AP is solely responsible for all content.

ALI SWENSON Swenson reports on election-related misinformation, disinformation and extremism for The Associated Press. twitter

China’s space programme targeted by ‘audacity’ of foreign agents, anti-spy agency warns

https://www.scmp.com/news/china/politics/article/3283525/chinas-space-programme-targeted-audacity-foreign-agents-anti-spy-agency-warns?utm_source=rss_feed

China’s top anti-espionage agency has warned that foreign agents have been attempting to steal information from the country’s space scientists, adding that it has stepped up its counter-intelligence efforts.

In an article posted on its official account on WeChat on Wednesday, the Ministry of State Security (MSS) said some countries attempted to use “infiltration and espionage activities” such as inducing or coercing the researchers to acquire China’s latest research advances.

Without identifying any particular country or disclosing details, the MSS said national security agencies had investigated and dealt with some cases, “effectively countering the audacity of foreign espionage agencies conducting intelligence activities against China”.

The MSS added that overseas spy agencies have recently been using high-precision remote sensing satellites to conduct surveillance and steal information.

Space security is “a crucial pillar and important component” of national security, the agency said, adding that it is essential to protecting the nation’s space assets, rights and orbital environment from threats posed by both natural conditions and human activities.

“Safeguarding space security has become a key strategy for determining a country’s future survival and development,” it said.

After achieving several milestones in recent years, China’s space programme last week unveiled an ambitious road map to surpass the United States and become the world leader in space science by 2050.

Space is increasingly viewed as “a new frontier for economic growth, military conflict, and national security”, the agency said in the article, adding that “major and middle powers prioritise space development, leading to heightened tensions around space security.”

Challenges include intensified competition for space resources, as abandoned satellites and rocket debris increase the risk of collisions with spacecraft, it said.

The MSS also accused “some Western countries” of intensifying an arms race in space, again, without naming the countries.

The article said the unnamed countries had established space combat forces with China seen as a key rival. They advocate space hegemony, and “spare no effort to contain and suppress us, which poses a threat to the peaceful environment of space,” the agency said.

Space is an escalating diplomatic flashpoint among major powers, especially the United States, Russia and China. Washington has accused both Beijing and Moscow of militarising space.

Beijing has repeatedly expressed its commitment to the peaceful use of space, while blaming Washington for sparking competition by establishing a space force.

In the article, the MSS stressed that space security represented an expansion of national security into new domains.

Space security is “a crucial arena for safeguarding national strategic interests and showing national security capabilities, holding significant and far-reaching strategic and overarching importance for defending sovereignty, security and development interests,” it said.

Since raising its social media profile with the launch of a WeChat account in August last year, the MSS has frequently posted alerts on threats from foreign spies in a bid to promote national security awareness.

Earlier this month, the ministry launched a drama series on its WeChat account in which foreign spies pursue Chinese scientists. The series centres on an aerospace materials scientist targeted by foreign spies who sabotage his car, a plot that may have been inspired by a true case in which a military scientist died in a car crash.

Will Vietnam keep ‘nuanced’ China policy amid report of radar system on disputed island?

https://www.scmp.com/week-asia/politics/article/3283570/will-vietnam-keep-nuanced-china-policy-amid-report-radar-system-disputed-island?utm_source=rss_feed

China may have installed a new radar system on Triton Island in the disputed Paracel archipelago in a move that analysts say could curb Vietnam’s operations in the area even as Hanoi aims to maintain its “nuanced” approach towards Beijing when dealing with maritime tensions.

A report by UK-based think tank Chatham House said China’s radar system on Triton – as shown by satellite images – could enable Beijing to survey an area stretching from Hainan Island to the Subi Reef in the Spratlys.

The development was worrying as Triton was only 130 nautical miles (240km) from the coast of mainland Vietnam, said Huynh Tam Sang, an international relations lecturer at Vietnam National University, Ho Chi Minh City.

“The new radar system gives China leverage to monitor Vietnam’s central coastal region, home to its strategic military bases,” he said. It would also allow China to bolster its electronic warfare and intelligence capabilities, he added.

In addition, China could also improve its monitoring of any oil and gas exploration operations by Vietnam near the Paracel Islands with the system, Huynh said.

Phan Xuan Dung, a research officer at ISEAS Yusof Ishak Institute and a PhD candidate at the Australian National University, told This Week in Asia that China could gain “de facto control” of the disputed area covered by its system through its ability to detect Vietnam’s activities.

“The question for Vietnam is how to respond to assert its sovereignty while avoiding maritime clashes,” he added.

China has administered the Paracel island chain since 1974 after a clash with forces from then South Vietnam.

Collin Koh, a senior fellow at the S. Rajaratnam School of International Studies at Singapore’s Nanyang Technological University, said that China’s radar system on Triton reflected the “growing military asymmetry” and Beijing’s edge over its South China Sea rivals such as Vietnam.

Koh told This Week in Asia that the system would significantly enhance the People’s Liberation Army’s surveillance capabilities in disputed waters. It could prove to be “critical in times of conflict, especially in terms of detection, tracking and targeting for its long-range strike capabilities,” he added.

The specialist in naval affairs in the South China Sea added that the system was part of a broader surveillance network to also counter US military assets in disputed areas, particularly the Northrop B-2 Spirit, better known as the Stealth Bomber.

The US was aware of China’s surveillance and tracking capabilities in the South China Sea, as seen during the flight of then-US House of Representatives Speaker Nancy Pelosi to Taiwan in 2022, which bypassed the disputed waters, Koh said.

Despite the “asymmetry” in military power between the South China Sea rivals, Vietnam has shown in several previous maritime incidents that it could counter China’s actions, Koh said.

He cited a tense stand-off after China built an oil rig near Triton Island in 2014 and a similar incident at the Vanguard Bank, a Vietnamese-occupied outpost in the Spratly Islands, in 2019.

In both incidents, Vietnam did not back down and showed its mettle against its larger opponent, Koh said. “I believe the Chinese paid heed to that episode [in 2014] ... [and had] some new-found respect for their Vietnamese rivals,” he added.

“Chinese planners would be disinclined to belittle the Vietnamese in times of conflict and would therefore have to take corresponding adaptive measures to cope with the latter’s threat,” Koh said.

Despite their maritime disputes, Vietnam would continue to seek stable ties with China and leverage communication channels between their leaders to resolve differences privately, observers say.

Phan noted that both countries signed 10 agreements to foster closer cooperation during Chinese Premier Li Qiang’s state visit to Hanoi earlier this month despite Hanoi’s condemnation of recent attacks by the Chinese coastguard against Vietnamese fishers.

Nonetheless, China’s installation of the radar system on Triton could compel Vietnam to accelerate its military modernisation efforts in response to the enhanced Chinese surveillance capabilities, Phan said.

Huynh said that Vietnam would likely continue its landfill operations in the South China Sea, given China’s “muted” reaction to such activities, and broaden its deterrence by partnering with the US, Japan, Australia, and the Philippines.

Hanh Nguyen, a research fellow at the Yokosuka Council on Asia-Pacific Studies, said that the Triton development was “not a breakthrough moment” in bilateral ties as Hanoi would maintain its longstanding approach towards Beijing.

“Vietnam has crafted a nuanced approach that delicately balances resisting China’s encroachment in the South China Sea ... Vietnam also doesn’t shy away from deeper economic and security cooperation with other powers as well as strengthening its armed forces,” she said.

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China’s Canton Fair, barometer of foreign trade, shows US, EU buyers may lose interest

https://www.scmp.com/economy/global-economy/article/3283530/chinas-canton-fair-barometer-foreign-trade-shows-us-eu-buyers-may-lose-interest?utm_source=rss_feed

When the autumn edition of China’s oldest and largest trade fair opened its doors last week, many Chinese exporters could not help but notice that Europeans and North Americans were less represented among the bustle of buyers at the twice-yearly event.

As such, there are simmering concerns that orders could fall short of the exporters’ expectations – and well shy of what was seen during the April session – over the span of the 136th China Import and Export Fair, commonly known as the Canton Fair, which wraps up on November 4.

Some also expressed frustration at the shrinking numbers of buyers from Russia and affluent regions of the Middle East.

“There are fewer buyers than in the April session,” said Joan Liang, sales manager of Guangdong Roule Electronics, which makes doorbells, solar lights and cameras. “Customers’ willingness to purchase doesn’t seem as strong as we had anticipated.”

Despite having invited Middle Eastern customers from Saudi Arabia, Israel, the United Arab Emirates and Dubai, Liang said many failed to appear at the company’s booth, and she speculated that geopolitical conflicts in the region might be affecting their participation in the widely watched event.

The Canton Fair is generally seen as a barometer of China’s foreign trade. It is divided into three phases to attract different types of buyers.

A record 246,000 international visitors flocked to the spring session of the fair, with more than 50,000 – 20 per cent – coming from Europe and North America and more than 160,000 – 65 per cent – from countries involved in China’s Belt and Road Initiative.

The current session saw a preregistration total of about 130,000 overseas buyers, but more usually come through the second and third phases. And the proportion of European and American buyers dipped 18.1 per cent while those from belt and road countries accounted for 69.7 per cent, according to organiser’s figures.

Jason Xu, export director for Sidite Energy, based in Zhejiang province, said the closure of Russian airspace and tariff uncertainties might be affecting many European and American customers. Meanwhile, he also noted how some buyers from the Middle East could not show up as scheduled.

The exporters’ on-the-ground assessment of the state of trade comes after China released underwhelming export figures for September that showed year-on-year growth had slowed to 2.4 per cent from 8.7 in August, while imports rose by 0.3 per cent.

More European and American buyers generally means higher profit margins, and that is what exporters say they were hoping for.

But those interviewed by the Post at the Canton Fair said they were having to accept the reality of emerging markets becoming increasingly important for the survival of small and medium-sized Chinese exporters – even though that can mean reduced profits and more payment risks.

From 2018-23, China maintained high growth rates of exports to its major trading partners in Asean, the Middle East and Latin America, with compound annual growth rates generally exceeding 10 per cent, according to a trade report released in August by Deloitte and WorldFirst.

It added that exports to Saudi Arabia saw a compound annual growth rate of 19.7 per cent, while exports to the EU and the United States grew by only 4.2 and 0.9 per cent, respectively.

Cao Yaoxin, head of the product department at the international marketing centre of Guangdong Homa Appliances, said Latin America would likely be the best-performing market this year, with the Middle East and Africa also seeing significant growth.

He noted that his company, which produces 13 million household appliances annually, has partnered with local factories in seven countries to cope with tariff and geopolitical risks.

And an exporter of a company producing lighting products said the firm had made about 50 new contacts at the fair, “all of them from non-Western countries”.

However, “I have doubts about their spending power,” he added, declining to be named. “It may be far less than those of regular American and European customers.”

Chinese smartphone giant Oppo enters tech pact with top EV maker BYD, acquires AI start-up

https://www.scmp.com/tech/big-tech/article/3283554/chinese-smartphone-giant-oppo-enters-tech-pact-top-ev-maker-byd-acquires-ai-start?utm_source=rss_feed

Chinese smartphone giant Oppo and BYD, the country’s leading electric vehicle (EV) maker, have entered into a strategic technology collaboration to push interoperability between advanced handsets and smart cars.

The two companies have agreed to work on a series of technologies that will enable Oppo’s Android smartphones to unlock and control EVs from BYD, according to their joint statement.

In their first collaboration, Oppo’s latest flagship 5G handset series, Find X8, uses over-the-air connectivity to control Shenzhen-based BYD’s recently launched Tengshi Z9 GT intelligent sedan.

Separately, Oppo is also in the process of acquiring artificial intelligence (AI) start-up AIWaves, according to a report on Tuesday by Jiemian, a Chinese digital media outlet affiliated with state-backed Shanghai United Media Group.

The latest initiatives by Oppo show its ambition to diversify and expand its business beyond the smartphone industry, following similar efforts by telecommunications equipment maker Huawei Technologies, which is also involved in AI, semiconductor design, cloud computing services and the smart-vehicle supply chain.

Dongguan-based Oppo was ranked as the world’s No 4 smartphone vendor in the third quarter, according to research firm IDC, behind Samsung Electronics, Apple and Xiaomi.

With the AIWaves acquisition, Oppo is expected to integrate a range of generative AI (GenAI) applications into its devices. Founded in March 2023, AIWaves earlier this year released its self-developed large language model – the technology underpinning GenAI services like ChatGPT – called “Weaver”.

Oppo expects to roll out GenAI functions to its 50 million smartphone users by the end of this year. These functions will be rolled out across its product portfolio, from affordable handsets to premium models, as part of a strategy to make AI accessible to everyone, Nicole Zhang, Oppo’s general manager of AI products, said in June.

Oppo declined to comment, while Hangzhou-based AI Waves did not immediately respond to a request for comment on Wednesday.

The founder of AIWaves – a company backed by various investors including Lanchi Ventures, formerly the China arm of US fund BlueRun Ventures – will join Oppo after the acquisition is completed, according to the Jiemian report, which cited unnamed sources. The acquisition price was not disclosed.

AIWaves’ flagship product is Wawa Writing, known as Frog Writing in English, a tool that assists in a range of writing tasks including marketing copy and fiction. It is also able to generate 100,000 Chinese words in 10 minutes, according to the start-up.

Other major Chinese Android smartphone makers, including Vivo, Huawei and Xiaomi, have previously unveiled similar plans to provide GenAI capabilities into their handsets to help make notes for phone calls, write text messages and enhance photography.

Why does China punish foreigners for taking drugs in other places (even where it’s legal)?

https://www.scmp.com/news/china/politics/article/3283565/why-does-china-punish-foreigners-taking-drugs-other-places-even-where-its-legal?utm_source=rss_feed

China’s strict drug laws have led to a senior executive from German car giant Volkswagen being kicked out of the country soon after returning from a holiday in Thailand.

The foreign ministry has confirmed that Jochen Sengpiehl, VW’s chief marketing officer and head of product strategy for China, had tested positive for cocaine and been detained for 10 days before his expulsion.

Media reports have said he also tested positive for cannabis, which is legal in Thailand although cocaine is not.

The case serves as a reminder of Beijing’s “zero-tolerance” approach to drugs, and the risk that foreigners can be detained for drug use outside the country. Here is how the law operates.

Yes. Random drugs tests may be carried out on flights from places where cannabis and other drugs have been decriminalised, with students and foreigners likely to be targeted.

In these cases a sample of urine or hair is usually taken. Traces of drugs only remain in the urine for a short period, around three days, but can stay in the hair for months.

Warnings posted by Chinese embassies in countries that have decriminalised cannabis – including Thailand, Canada and the Netherlands – say that someone who tests positive on arrival will be treated “the same as if they used drugs domestically”.

China has been targeting travellers arriving from Thailand since cannabis was decriminalised in the country in 2022, a law the country’s government is now considering reversing.

The authorities argue that it does not matter where the drugs were taken. They say having drugs inside your system is illegal in China so they have jurisdiction.

In practice the penalties are often imposed on the basis of a positive test “regardless of whether there is evidence of drug use or jurisdictional authority”, Yu Siming, a lawyer formerly working at Shanghai law firm MHP wrote.

Travellers who fail drugs tests face the same penalties they would if they had been caught using drugs inside China. This can mean 10 to 15 days’ administrative detention – something the police have the power to impose without a trial – and a fine of up to 2,000 yuan (US$280).

For less serious cases, a penalty of up to five days’ detention or a fine of up to 500 yuan may be imposed.

However, if someone is caught with even small quantities of cannabis in their luggage it will be treated as smuggling, which can lead to criminal charges and a trial. Even those caught with small amounts could face up to three years in jail.

Foreigners are also to face a significant risk of being ordered to leave the country within a specific period or face deportation, something the authorities have become stricter about enforcing, according to a 2019 article by Yu.

In one of the most high-profile cases in recent years, 16 foreign teachers and students in the eastern city of Xuzhou were detained for drug use in 2019. A number of them are known to have been deported and all teachers involved lost their jobs.

Foreigners who are deported are banned from re-entering the country for 10 years.

China woman arrested for US$210,000 scam after undergoing plastic surgery to evade capture

https://www.scmp.com/news/people-culture/trending-china/article/3283169/china-woman-arrested-us210000-scam-after-undergoing-plastic-surgery-evade-capture?utm_source=rss_feed

A Chinese woman who defrauded more than 1.5 million yuan (US$210,000) underwent plastic surgery and fled to Thailand. She is currently under investigation by Thai police and may face back to the mainland.

She was apprehended after the Thai Immigration Police received a tip-off.

Local residents reported that the 30-year-old woman, known by her surname Xie, was living in a flat in Bangkok and was often seen covering her face and wearing a mask, raising suspicions that she might be an illegal immigrant.

In response, immigration officers visited her flat and approached her as she came downstairs to pick up a food delivery, requesting to check her passport.

It was discovered that Xie entered Thailand in late 2022 with a visa-on-arrival, allowing her a 15-day stay for tourism. However, she has overstayed her visa by more than 650 days. As a result, authorities arrested her on October 7.

During the investigation, Xie claimed to have been a flight attendant for a well-known airline before her dismissal. However, Thai police later uncovered that she was wanted under an Interpol Blue Notice.

Between 2016 and 2019, she allegedly defrauded six victims of 1.52 million yuan by promising to secure them flight attendant positions with major airlines.

Reports suggest she used part of the money to undergo facial plastic surgery before fleeing to Thailand.

Xie was suspected of fraud as early as January 2014. Her younger cousin, known by the surname Wu, among the accusers, revealed to Red Star News that Xie had created an online persona as a wealthy flight attendant, frequently sharing photos from various overseas destinations.

In 2018, Xie contacted Wu, borrowing 52,000 yuan (US$7,300) and claiming she needed the funds to assist someone in purchasing a watch in Japan. She promised to reward Wu with 5,000 yuan after the deal.

Wu managed to recover 17,000 yuan; however, despite numerous requests, Xie never returned the remainder.

After conducting some online research, Wu discovered that Xie had long ceased working as a flight attendant and was instead living off fraudulent activities.

The Thai Immigration Bureau Division stated that Xie would be punished according to Thai law for overstaying her visa and would subsequently be deported back to China, as reported by Red Star News.

Her case has sparked discussions on Chinese social media, with many expressing astonishment at her before-and-after plastic surgery photos.

“Why do I feel like she looks worse after the surgery? It’s as if she is fleeing from a botched job,” one person quipped.

Others praised the outcome, stating: “No matter how clever the disguise, you cannot escape the law! Kudos to the police!”

In another shocking case from China, Lao Rongzhi, wanted for multiple murders, evaded capture for 20 years by using false identities and undergoing multiple plastic surgeries.

She was finally apprehended in southeastern China’s Fujian province in 2019 and was executed in December last year.

When it comes to China, Britain must play smart, not be emotional

https://www.scmp.com/opinion/china-opinion/article/3283277/when-it-comes-china-britain-must-play-smart-not-be-emotional?utm_source=rss_feed

Last week, Rishi Sunak, leader of Britain’s Conservative opposition, grilled Keir Starmer during a Prime Minister’s Questions session, starting with Taiwan, sweeping through the Jimmy Lai Chee-ying case in Hong Kong and ending his interrogation on issues of Russia-China relations and intelligence.

Starmer responded by setting out his government’s China policy framework: “cooperate, challenge, compete”. But a fourth C is needed to predict what a Labour-led Britain may seek out: consistency.

The previous Sunak government I served in had a very similar-sounding framework of “protect, align, engage” – so similar that I struggle with the semantical acrobatics. But the United Kingdom hit the reset button so many times that the other partner in this bilateral relationship could be forgiven for thinking we were having a political breakdown. There was no consistency whatsoever.

I agreed with former foreign secretary James Cleverly’s reluctance to define China using one word (at the time, hawks lobbied him to label it a threat). And whether it is “protect, engage, align” or “cooperate, challenge, compete”, the policies allow for nuance, breadth and depth in what British sinologist Kerry Brown determined was a bilateral relationship that showed the tectonic shifts in power more than any other diplomatic dance.

However, I do believe that one element will win out over the others, and therefore the adage that politics is all about choices comes to the fore. Which will it be for Labour, my new political party?

Last week, Britain’s Foreign Secretary David Lammy visited Beijing and Shanghai, aiming to establish a higher frequency of dialogue with his counterpart.

Interestingly, China was cited by Sunak as an “enabler” of Russia in Prime Minister’s Questions, yet as we approach three years since Russia’s invasion of Ukraine I’m having a told-you-so moment. At the time, I said the single biggest mistake the West could make was pushing China into the arms of Russia. When in Beijing, Lammy raised the issue of China’s support for Russia.

Savvy diplomacy from 2022 could have made efforts to avoid this trend. I feel strongly that there is an opportunity for this new government to insert itself, in a positive way, into some of the most pressing international issues of the day.

As a major global force, China must be included in the conversation. But we in the West must accept that if both our tone and actions attempt to make China a pariah, it will be left with no option but to lean towards Russia, economically and politically. Let’s be smart, not emotional.

The domestic challenges we face in the UK, from economic woes to cohesion, need to be addressed and so maybe China will become an overt issue in UK electoral politics, in addition to already being an elite interest. Due to the sheer number of Chinese students and China’s importance as a key engine of growth in the global economy, the world’s second biggest economy will shine light or cast shadows on the UK.

Britain’s finance minister Rachel Reeves is reported to be fronting a large business delegation to China next year. Will there be inducements for Chinese investment in the UK’s coming budget? Will the mega company Shein find a welcoming home? And with the potential of Trump 2.0 and higher US tariffs on China, perhaps the UK and China would need each other more than ever. But can Britain truly have an autonomous foreign policy when it comes to the biggest competitive battle of the day: the United States vs China?

Media coverage in the UK has labelled Lammy’s engagement as British kowtowing, even invoking the 18th century Macartney mission (though Lord Macartney refused to prostrate himself before the emperor). During the launch of a book on UK-China relations by Professor Brown that I chaired, I highlighted how Macartney saw in China an ossifying empire.

My belief is that we need to up our game in the West, otherwise developing countries, including China, will end up seeing us as an ossifying force. To influence China’s trajectory, we must show that our way of doing things is working. The future has not been written; Britain’s Labour Party has an opportunity to change our prospects at home and influence the tone of events overseas.

Lammy’s ambition is to carve out a consistent approach towards China. Will it stand up to a fierce wall of opposition among UK politicians? For China’s part, its leaders can help bolster this change in tack by revisiting the sanctions in place for UK parliamentarians, dispelling espionage fears and being the architects of tangible short- and long-term commercial deals that benefit both our countries when the next major visit happens.

Guangdong, China’s powerhouse province, loses pace with peers as property crisis bites

https://www.scmp.com/economy/economic-indicators/article/3283522/guangdong-chinas-powerhouse-province-loses-pace-peers-property-crisis-bites?utm_source=rss_feed

Guangdong province – traditionally a reliable driver of China’s economic growth – has continued to lag behind the national average in gross domestic product terms, a gap that has widened further thanks to an unresolved crisis in the property market and divergent performance from its cities.

The southern region’s GDP grew 3.4 per cent for the first three quarters, 1.4 percentage points below the national figure of 4.8 per cent.

This was a wider gap than the 1.1 percentage point deficit observed in the first six months, when the province recorded 3.9 per cent growth against the country’s 5 per cent.

Retail sales also saw paltry growth at 0.7 per cent, down from the 1.2 per cent observed in the first half of the year.

“Guangdong’s underperformance is showing the negative impact of the real estate crisis,” said Guo Wanda, vice-president of the Shenzhen-based China Development Institute think tank.

“Tech-oriented Shenzhen is doing fine, but cities that are more reliant on the upstream and downstream of real estate and traditional manufacturing like Guangzhou and Foshan are slowing.”

Guangdong is home to several large property developers – some of which, like Country Garden and Evergrande, have suffered significant and public financial losses.

In contrast, Zhejiang province – the eastern economic powerhouse home to several major players in emerging industries – reported GDP growth of 5.4 per cent for the first nine months of the year amounting to 6.26 trillion yuan (US$878.79 billion).

National capital Beijing also reported growth outpacing the national average, with a 5.1 per cent year-on-year rise in the first three quarters, as its production of new energy vehicles rose 5.5 times year-on-year and retail sales went up by 2.9 per cent.

Financial centre Shanghai, meanwhile, recorded 4.7 per cent growth in the same period.

Top officials have reiterated their resolve to meet China’s annual growth target of “around 5 per cent”, prodding localities to contribute.

In similar fashion, the Guangdong government recently urged provincial officials at all levels to implement the country’s economic stimulus measures as soon as possible, with particular attention paid to activating the local real estate market and stabilising property prices.

Guo of the Shenzhen think tank said a high base effect also has an effect on the growth rate given the sheer size of Guangdong’s economy – 9.99 trillion yuan from January to September this year.

Guangdong’s secondary sector – which includes processing, manufacturing and construction – also continued to worsen, with output growth down to 4.8 per cent for the first three quarters of 2024 compared to 5.7 per cent logged in the first half.

“The most advanced cities in Guangdong – Guangzhou, Foshan, Dongguan – have seen a high office vacancy rate, 30 to 40 per cent,” said Louis Li, an owner of several properties and offices in the Greater Bay Area who feels “worried” about the province’s prospects for investment and industrial development.

The southern province’s growth has fallen behind other regional economic arteries that have released their GDP scoresheets for the first nine months, with Inner Mongolia reporting 5.8 per cent, Jiangxi with 4.7 per cent, Henan with 5 per cent, Liaoning with 4.9 per cent and Sichuan with 5.3 per cent.

“The development of the [country’s] midwest and the operation of the Trans-Eurasia Logistics [railway venture] have diverted resources from provinces along the coast,” said Peng Peng, executive chairman of the Guangdong Society of Reform, a think tank affiliated with the provincial government.

“Guangdong is no longer at the forefront.”

Chinese solar stocks jump on rumours Beijing will stifle excess supply, price war

https://www.scmp.com/business/china-business/article/3283527/chinese-solar-stocks-jump-rumours-beijing-will-stifle-excess-supply-price-war?utm_source=rss_feed

Stocks of several Chinese solar companies surged on Wednesday amid rumours that Beijing will unveil new rules for solar photovoltaic (PV) manufacturing to curb oversupply and a price war in the sector.

Xinyi Solar jumped 12 per cent to HK$3.80, and GCL Technology Holdings rallied 25 per cent to HK$1.50 in Hong Kong. On the mainland, Longi Green Energy Technology surged 6.5 per cent to 19.50 yuan and Sungrow Power Supply gained 4.7 per cent to 98.40 yuan.

Rumours on social-media sites on Wednesday afternoon said that industry regulator the Ministry of Industry and Information Technology (MIIT) is planning to implement restrictions on energy consumption for PV production next month.

Other rumours said MIIT would introduce stricter requirements for utilisation rates of production capacity.

“If these are all true, it will send a positive signal to the solar PV industry, as such policies will suppress the continued decline of solar PV prices,” said Lin Boqiang, dean of Xiamen University’s China Institute for Studies in Energy Policy.

The rumours followed recent pledges from China’s PV and wind-turbine manufacturers to end price wars in the two clean-energy sectors, which are both struggling with overcapacity and fierce price competition as producers fight for market share.

Last week, the China Photovoltaic Industry Association held a meeting in Shanghai with major companies like Longi Green Energy, Tongwei, and JinkoSolar to agree on preventing “vicious” competition. Shortly after, 12 major wind-turbine manufacturers, including Goldwind and Envision, pledged to improve price discipline.

China, the world’s largest developer of solar and wind energy, added 76 gigawatts (GW) of wind capacity, 66 per cent of the world’s total, and accounted for more than 60 per cent of the world’s 425GW of additional PV capacity last year, the International Energy Agency (IEA) said in a report this month.

Rapid expansion of manufacturing has slashed the cost of PV modules by 50 per cent since December 2022, according to IEA.

Executives at China’s leading solar companies, including Zhu Gongshan, founder and chairman of GCL Technology, have repeatedly called for government intervention and industry discipline to stem oversupply, as the solar industry has entered an “ice age”.

In July, MIIT issued a draft plan that would require solar energy projects to raise their minimum capital ratios. It would also order solar companies to spend a minimum of 10 million yuan (US$1.4 million) or 3 per cent of total sales, whichever is higher, on research and development.

If the rumoured policies are implemented, they will benefit the leading solar manufacturers and eliminate producers that lack technological capabilities and tend to disrupt the market with low-cost, low-quality equipment, according to Shen Xinyi, researcher at the Helsinki-based Centre for Research on Energy and Clean Air.

“Raising energy consumption and environmental standards [of PV manufacturing] will consolidate the market competitiveness of high-quality firms and alleviate overcapacity,” she said.

Additional reporting by Zhang Shidong

Hong Kong’s South China Morning Post scoops 3 awards at digital media competition

https://www.scmp.com/news/hong-kong/article/3283538/hong-kongs-south-china-morning-post-scoops-3-awards-digital-media-competition?utm_source=rss_feed

The South China Morning Post has picked up three prizes at the 19th annual w3 Awards, presented by the Academy of Interactive and Visual Arts in the United States to recognise outstanding work in digital media.

The Post’s flagship video interview programme, Talking Post with Yonden Lhatoo, won gold in the category of “general video – news and politics”.

The winning episode, produced by the Post’s video team, takes a deep dive into Hong Kong’s notorious “coffin homes” and highlights the plight of the city’s underprivileged families forced to live in dire conditions.

The Post’s food and culture programme, Eat Drink Asia won silver at the w3 Awards for “video series – food and drink”. Each episode of the show focuses on an ingredient, dish or cooking technique, and tells the story of its origins, evolution, cultural impact and international influence.

The five-part podcast series, Inside China’s demographic revolution, also won silver in the “podcast individual episodes – news and specials category”. Each episode delves into an aspect of China’s shifting demographics and discusses its impact on the country’s economy and society.

“Once again, our award-winning journalists have made us proud,” Post editor-in-chief Tammy Tam said. “Our audiovisual content is right up there with the best from around the world, and we are pleased to see the judges recognise the top-quality journalism that the Post is known for.”

Director of video Chieu Luu added: “These videos and podcasts are examples of teamwork between different desks within our newsroom. They demonstrate the Post’s success in producing impactful journalism for multimedia platforms.”

The w3 Awards are the latest in a string of honours for the video team in 2024. Earlier in the year, it won gold at the Digital Media Awards Asia for its mini-documentary strand SCMP Films and silver for its SCMP Explains series.

SCMP Films also won the top prize at the Digital Media Awards Worldwide, presented by WAN-IFRA, the World Association of News Publishers. The New York Festivals TV and Film Awards presented SCMP Films with silver for North Korea’s ‘Return to Paradise’ nightmare in the short-form documentary category, and Luu himself won video executive of the year at the Digiday TV and Video awards.

China cracks down on ‘uncivilised’ online puns used to discuss sensitive topics

https://www.theguardian.com/world/2024/oct/23/china-meme-online-pun-crackdown-rules

China’s internet regulators have launched a campaign cracking down on puns and homophones, one of the last remaining ways for citizens to safely discuss sensitive subjects without recriminations or censorship.

The “clear and bright” campaign is targeting “irregular and uncivilised” language online, particularly jokes, memes, and wordplay, the Cyberspace Administration of China and the ministry of education announced this month.

“For some time, various internet jargons and memes have appeared frequently, leaving people more and more confused,” said an editorial by the Communist party mouthpiece, the People’s Daily.

“They also form a hidden erosion on the daily communication and ideological values ​​of minors, which can easily lead to adverse consequences.”

China’s online spaces are strictly monitored and censored. Some sensitive topics and terms are strictly banned, such as references to the Tiananmen massacre, or criticism of President Xi Jinping. Insulting individuals or China generally is also frowned upon.

In response, users have adapted, using funny or obscure references and in-jokes to get around the censorship. Many rely on homophones, using phrases that sound very similar in Mandarin, but were written with different Chinese characters, such as the word for “paratrooper” (sǎn bīng) instead of “idiot” (shǎ bī).

Authorities are in a near-constant race to catch new ways of describing Xi without mentioning him, which in the past have included a series of three arrows to represent the tones in his full name, or references to Winnie-the-Pooh because of suggestions Xi resembles the character.

Commenters will also often use the term “your country” to criticise Communist party (CCP) rule, instead of the CCP’s commonly used “my country”, as a protest that the CCP’s China is not their China. One Chinese academic told the Guardian that instead of openly discussing concerns about government policies, colleagues would instead share links to allegorical poems or historical references.

State media has also suggested the new campaign intends to target even benign-sounding puns, giving as an example the phrase “rainy girl without melons” (yǔ nǚ wú guā) which is often used in place of “it’s none of your business” (yǔ nǐ wú guan).

The People’s Daily noted the quick turnover for online memes, and urged authorities and social media platforms to not allow “obviously ambiguous” new words to spread quickly without “rectification”.

“A wave of bad jokes will have disappeared, and a new wave of bad jokes may be on the way,” it wrote.

Additional reporting by Chi-hui Lin

Staff at pricey Japan boutique kneel in apology after China woman angered by ‘rude’ service

https://www.scmp.com/news/people-culture/trending-china/article/3283354/staff-pricey-japan-boutique-kneel-apology-after-china-woman-angered-rude-service?utm_source=rss_feed

A Chinese woman shopping at a Fendi outlet in Japan expressed so much outrage at the rudeness of its sales staff that four employees knelt in front of her to apologise.

While some people have criticised the woman for being too harsh, she gained widespread support on mainland social media.

The incident came to light via a series of posts by a Xiaohongshu blogger known as Annie Datouzai, who claims to be a fashion specialist who studied at Columbia University and the University of Toronto.

The blogger has 8,200 followers and is currently based in New York.

While travelling in Japan, she visited a Fendi store in Tokyo to buy a woollen shawl. After trying it on, she decided to buy it and requested a new one from the shop’s stock.

However, a senior sales representative approached her, abruptly removed the shawl from her shoulders without asking permission, and then handed it to his clients, a Chinese couple.

The woman expressed her shock in the post, saying: “I was completely stunned. Why would a male sales representative take the shawl off my body without any explanation?”

When she tried to file a complaint, the process became complicated and delayed due to the poor English of the sales staff.

During the complaint process, she also felt ignored, especially when she witnessed the sales representative completing the sale of the shawl to the Chinese couple.

Eventually, the store manager, surnamed Kaneko, directed her to the second floor, where the manager, two sales staff, and a translator all knelt in a row to apologise.

Although their gesture appeared sincere, the manager justified giving the shawl to another customer after consulting the staff member who was supposedly assisting her.

Also, the manager noted that there were no surveillance cameras to verify the incident. However, the woman later debunked this claim by confirming with another Fendi store in Japan.

Later, she managed to file a complaint with Fendi’s headquarters and subsequently received an official email apology from the head of the shop, Koshimizu.

“We sincerely apologise for the actions of the sales representative who removed the shawl from you while you were still trying it on. We should have ensured your consent before taking the item to show another customer.

“Additionally, we failed to provide you with a clear and professional response when you asked about surveillance footage and customer service contact information,” Koshimizu said.

The incident attracted widespread attention after reports about it appeared in the media.

On social media, some netizens criticised her for being “too harsh” and “making a mountain out of a molehill”.

One comment read: “Actually, the staff were already getting you a new one. Why are you still complaining? They have the right to sell to other customers unless you want to buy two! Making them kneel is too much. Who do you think you are?”

On October 22, the woman responded with a follow-up post, insisting that she did not ask any members of staff to kneel, and her behaviour in the store was reasonable and calm.

She also said that her intention was never to fuel sentiments of “Japanese discrimination against Chinese,” adding that the shawl was actually sold to another Chinese couple, not Japanese customers.

“I am satisfied with how the store manager handled the situation,” she said.

“My complaint aimed to enhance staff training and the shop’s crisis management. Many asked what outcome I was seeking. It was simply to improve the shopping experience for future customers,” she wrote.

In 2023, Chinese tourists spent an estimated 286 billion yen (US$1.9 billion) on shopping in Japan, according to Statista.

Many mainland netizens viewed her voice as significant, potentially leading to improved treatment for Chinese travellers in Japan.

“Your story has received significant media attention, where people are criticising you and other mainland Chinese. It’s very strange. Why is it that a Chinese person mistreated abroad ends up being criticised by their people?” one person asked.

“Why are people saying you were too harsh? In reality, because you stood up and insisted on your complaint, the store took action.

“Now, any other Chinese customer who visits that store is likely to be treated with respect. If you had backed down, the next mistreated customer could have been any one of us,” said another person.

Will stimulus package help China’s local governments pay bills?

https://www.scmp.com/economy/policy/article/3283483/will-stimulus-package-help-chinas-local-governments-pay-bills?utm_source=rss_feed

China’s plans to issue special government bonds to help local governments get their debts under control as it pushes them to pay their overdue bills gave Edward Zeng, the founder of a tech start-up, a glimmer of hope this month because he has been waiting for payment for years.

In 2019, Zeng’s tech company was acquired by a state-owned enterprise (SOE) for millions of yuan.

As part of the deal, his team took part in research and development tasks for a local government’s smart city project in southern China.

But the local government failed to pay the SOE, meaning it lacked the funding to complete the acquisition.

“Those smart city projects were the most important business segment for each local government at the time, with tens of billions of yuan invested in each across the country,” Zeng said.

However, following the emergence of the Covid-19 pandemic, many smart city projects began to default on payments to downstream companies, and the one Zeng’s team was working on laid off 30 per cent of its staff, including Zeng.

Zeng’s plight is just a small glimpse into a larger picture: over the past few decades, as Beijing pursued economic growth, local governments played a crucial role.

They financed major projects through local financing platforms to meet growth targets. Over time, they also accumulated massive levels of debt and began defaulting on payments to suppliers.

According to data from the International Monetary Fund, China’s local government debt had reached 92 trillion yuan by 2022, equivalent to 76 per cent of that year’s gross domestic product.

After two lawsuits, Zeng has recovered about one-third of the acquisition money he was supposed to receive.

“It’s very common for local governments to default on payments to businesses when a lot of projects are being abandoned halfway,” Zeng said.

“But they are the ones in power, and we can’t do anything about it and can only turn to other industries.”

Li Daokui, a professor at Tsinghua University and a government policy adviser, described local governments’ arrears in accounts payable to enterprises as “shocking” in an interview on October 14, saying they owed companies and employees an amount equivalent to 10 per cent of GDP.

That delay in payments is a key reason consumers are not spending, Li said, because they are simply not getting paid. He said local governments must make paying back their debts a priority, rather than launching new infrastructure projects.

After the Ministry of Finance announced a large debt ceiling increase this month to allow local governments to swap out their hidden debts, calling it “the most powerful debt-reduction measure in recent years”, the General Office of the Communist Party Central Committee and the General Office of the State Council issued a joint circular on Thursday addressing arrears to enterprises.

It outlined improvements to legal and regulatory systems, supervision of government projects, and the establishment of a unified platform for small and medium-sized enterprises (SMEs) to report payment defaults.

Private entrepreneurs are waiting cautiously to see how effective those policies are, citing previous cases of inconsistent implementation at the local level.

Zeng said it is essential to ensure the bonds are used to pay off existing arrears, rather than propping up projects by the new leaders of local governments.

“Most local governments have changed their leadership, and they have little incentive to actually repay their predecessors’ arrears to businesses, especially to SMEs,” Zeng said.

Jay Feng, a subcontractor for a state-owned power grid and property developers in Guangdong province, said the central authorities’ policies were always good, but they could never be enforced on the ground, “at least in solving deep and crippling local debts”.

“I hope that this time, the scale of the bonds might be large enough to hold local departments accountable to repay SMEs like us,” Feng said.

Could Ugandan rail deal convince China to help get Kenyan project back on track?

https://www.scmp.com/news/china/diplomacy/article/3282745/could-ugandan-rail-deal-convince-china-help-get-kenyan-project-back-track?utm_source=rss_feed

A Ugandan construction deal could provide the impetus needed to see China hand over extra financing to a stalled rail project in Kenya, according to observers.

On Monday last week, Uganda awarded Turkish construction firm Yapi Merkezi the contract to build a 272km (169-mile) section of the Standard Gauge Railway (SGR) from capital Kampala to Malaba at the Kenyan border, at a cost of US$3 billion.

It comes just over a year since funding delays saw Kampala terminate a 2015 contract it had with China Harbour and Engineering Company (CHEC) to build the railway.

Yapi Merkezi termed the deal as “one of the largest projects signed by Turkish contractors abroad” and said it holds strategic significance not only for Uganda but also for East Africa.

The contract involves the design, construction and supply of rail vehicles for a standard gauge railway that meets European and American standards. It will be fully electrified, the firm said.

Uganda is optimistic the railway will lower the cost of doing business, reduce the strain on roads and support the country’s ambition to export 12 million bags of coffee each year.

But the effects of the deal could extend past Uganda’s border. Observers believe it will also increase the likelihood of China funding the Naivasha to Malaba leg of the Kenyan SGR, since the ability to freight goods into Uganda – and beyond to Rwanda, South Sudan and the Democratic Republic of the Congo (DRC) – will see a major boost to revenues.

The SGR project is part of the East African Railway Master Plan, aimed at revitalising the railways servicing Tanzania, Kenya, Uganda and extending to Rwanda and Burundi and eventually to South Sudan and the DRC.

In 2013, Chinese planners incorporated the railway plan into what was then the newly announced Belt and Road Initiative.

In 2014 and 2015, Kenya secured about US$5 billion from China Eximbank to build its 590km (366-mile) track from the Indian Ocean port city of Mombasa through capital Nairobi to Naivasha, a town in the Central Rift Valley. This was completed in 2017.

But the line never went any further. China Eximbank pulled the plug on finance for the project’s extension to Malaba without a new commercial viability study.

Tim Zajontz, a research fellow in the Centre for International and Comparative Politics at South Africa’s Stellenbosch University, said paradoxically, the contract between Kampala and Yapi Merkezi must be reassuring for Chinese financiers, even if the project has not been awarded to a Chinese firm.

“The viability of Kenya’s SGR, which is a belt and road flagship project, depends on cross-border cargo that is destined for Kampala and beyond,” Zajontz, who is also a lecturer in global political economy at the University of Freiburg, said.

The fact that Uganda is now finally going to build the Malaba-Kampala section increases the chances that Chinese banks will get involved in closing the Kenyan SGR gap between Naivasha and the Ugandan border, he said. The prospect of cargo travelling seamlessly from Mombasa to Kampala should positively affect the internal rate of return of Kenya’s SGR.

“This is quite crucial, especially if the extension from Naivasha to the Ugandan border should come in the form of a public-private partnership with Chinese participation,” Zajontz said.

However, sub-Saharan Africa geoeconomic analyst Aly-Khan Satchu said the main issue for China is the lack of coordination and alignment among East African nations and, as such, China is probably not keen or invested in achieving that alignment.

“Therefore, my sense is East African nations are on their own and working independently of Beijing,” Satchu said of the decision by the countries to proceed to implement the railway projects individually rather than financing and building them jointly, as originally envisioned by the East African Community.

For Uganda, the Kampala-Malaba railway is part of the country’s ambition to build a 1,700km (1,056-mile) electric railway line in phases to boost trade and cut transport costs. The first phase will cover the 272km (169-mile) Malaba-Kampala route, followed by northern, western and southern lines linking to South Sudan, DRC and Rwanda, according to Uganda’s Standard Gauge Railway project coordinator Perez Wamburu.

Last week, Uganda’s works and transport minister Edward Katumba Wamala said Uganda will use its own funds and credit from export credit organisations to finance its rail project, which will take four years to complete once work begins next month.

He also revealed that Kenya is working on connecting Naivasha to Malaba, “and together, their infrastructure will bring the SGR to life, unlocking economic opportunities across the region”.

Meanwhile, Kenyan officials said they had resumed talks with China to fund the extension of the railway to Malaba.

On the sidelines of the Forum on China-Africa Cooperation (FOCAC) held in Beijing in September, Kenyan President William Ruto spoke to Chinese President Xi Jinping on the issue of extending the railway to the Ugandan border to boost regional trade.

“We agreed to discuss regional infrastructure projects such as the expansion of the SGR,” Ruto said at the time.

However, Satchu is sceptical that Kenya has its “ducks in a row” to a degree that Beijing would be keen to bankroll the extension of Kenya’s SGR.

“They [China] might prefer to continue to see a roll-down in Kenya exposure,” Satchu said of the railway loans that Kenya currently owes Chinese lenders.

Zajontz said the Kenyan government has tried to solicit funding for an extension for years – from both Chinese and non-Chinese sources.

“So far, banks have been reluctant to sign another loan, considering Kenya’s difficult fiscal situation,” Zajontz said. He added that a lot depends on Nairobi’s debt management efforts and on the International Monetary Fund which is monitoring Kenya’s debt portfolio closely.

“If packaged as a bankable project, we might see another public-private partnership after the Tazara rehabilitation deal that was announced last month,” Zajontz, co-editor of the book Africa’s Railway Renaissance, said.

“Obviously, Yapi Merkezi now has a firm foot in the door of Uganda’s railway construction market. However, this does not mean that possible future extensions beyond Kampala towards Rwanda, the DRC and South Sudan will necessarily be awarded to Yapi Merkezi.”

In August, Tanzania unveiled its modern railway, which was built by Yapi Merkezi. At a cost of US$3.1 billion, the 541km (336-mile) line runs from Dar es Salaam and the eastern city of Morogoro to capital Dodoma. As well as that, a joint venture involving China Civil Engineering Construction Corporation and China Railway Construction Corporation is building two sections of Tanzania’s 2,561km (1,591-mile) railway line.

Zajontz said Tanzania’s SGR was proof that governments can flexibly award railway segments to different contractors as long as common technical standards and norms are defined.

“East Africa’s railway renaissance will continue for at least a decade and Chinese firms will certainly secure a stake in it,” Zajontz said.

China’s stock markets could enjoy ‘instant’ boost from 2 trillion yuan fund: think tank

https://www.scmp.com/economy/policy/article/3283472/chinas-stock-markets-could-enjoy-instant-boost-2-trillion-yuan-fund-think-tank?utm_source=rss_feed

China should issue 2 trillion yuan (US$280 billion) in special bonds to establish a stock market stabilisation fund, a government-affiliated research institute proposed on Tuesday, amid broader efforts by authorities to bolster the economy.

The fund would help enhance the inherent stability of the capital market and promote steady economic growth, according to the report by the Institute of Finance and Banking under the Chinese Academy of Social Sciences.

The call for purchasing blue-chip stocks and exchange-traded funds came as the stock market has become a key gauge of market sentiment and also a tool to restore confidence, especially for more than 200 million retail investors in the A-share market.

“The stock market responds more quickly to policy benefits, making it easier to attract incremental funds from household savings, bank wealth management, and foreign capital, thereby boosting market confidence almost instantly,” the Beijing-based governmental think tank said.

Late last month, during a press conference where China fired its policy bazooka to boost the economy, People’s Bank of China governor Pan Gongsheng said Beijing was “studying” a state-backed stabilisation fund, which could shore up confidence in its equity markets.

However, there have been wild swings in China’s stock market in the past month, amid concerted efforts by the government to revitalise the economy through a broad range of stimulus policies.

Measures such as rate cuts, eased property restrictions and initiatives to boost consumption, as well as other fiscal measures, have been rolled out to address the persistent slowdown.

But key challenges, particularly weakening consumer demand and declining property values, continue to weigh heavily on growth.

The report suggested encouraging more long-term funds, such as from insurance companies and local social security funds, to invest in the stock market.

It also suggested improving coordination between financial institutions and the central bank to ensure an effective link between the money market and the capital market, with the PBOC providing low-cost liquidity to the stock market when needed.

“There is often a time lag between the implementation of policies aimed at increasing persistent income and expanding effective investment,” the report said.

“The subsequent release of consumption potential and noticeable price increases, which widens the gap between macroeconomic data and micro-level experiences.”

Tim Cook meets China regulator in Beijing but no final word on Apple Intelligence

https://www.scmp.com/news/article/3283475/apples-tim-cook-meets-china-regulator-beijing-no-final-word-apple-intelligence?utm_source=rss_feed

Apple chief executive Tim Cook spoke with China’s top industry regulator on Wednesday on a range of topics, according to an official Chinese statement, but the announcement fell short of providing any information on the roll-out of Apple’s AI service in the country.

Cook met with Jin Zhuanglong, the Industry and Information Technology Minister, to discuss topics ranging from Apple’s further development in China, one of its largest overseas markets, to cyber and data security and cloud services, according to a statement published by the Chinese regulator on Wednesday. The ministry is a key government agency overseeing AI applications in China.

The statement did not mention whether the two talked about Chinese market access for Apple Intelligence, the bundle of generative artificial intelligence (GenAI) services that is slated to launch soon in certain countries but not China, where a permit is required from Beijing for any public release of GenAI software. As of August, China has approved a total of 188 GenAI services for Chinese users, all of which are developed by local firms.

Analysts have said that the exclusion of Apple Intelligence from the China market will weigh on iPhone sales in the country, where local competitors from Xiaomi to Oppo have been touting how the addition of AI has made their devices more capable in various tasks, from writing content to editing photos.

Chinese consumers have also been vocal about their desire to see Apple bring its GenAI services – which are expected to be released as part of the iOS 18.1 update on October 28 – to China as soon as possible.

Under a post about his visit to China, published by Cook on Chinese microblogging service Weibo on Monday, one user asked if his visit “was for negotiating [the roll-out of] AI with the Ministry of Industry and Information Technology”.

MIIT’s Jin said at the meeting with Cook that China is creating new opportunities for foreign companies, and that it expected Apple to deepen its ties with the country by continuing to invest in innovation for the market, according to the statement.

In the MIIT statement, Cook is quoted as saying that Apple will “actively seize on opportunities” arising from China’s willingness to open its doors wider, by expanding investment in the country and helping facilitate a “high-quality” Apple supply chain.

Just add air and water: China lab finds eco-friendly pathway to chemical production

https://www.scmp.com/news/china/science/article/3283311/just-add-air-and-water-china-lab-finds-eco-friendly-pathway-chemical-production?utm_source=rss_feed

At a research lab in the city of Hefei, in southeastern China’s Anhui province, a team of scientists has managed to create amino acids – the building block of life – using only air and water.

The experiment in August could offer a new approach to eco-friendly chemical production, according to the researchers.

The research also indicated a potential for more complicated molecules, such as proteins, the project’s lead scientist Zeng Jie, from the University of Science and Technology of China (USTC), said on Monday.

Amino acids, the fundamental components of proteins, play a crucial role in living organisms and the researchers were looking for another way to synthesise glycine – the simplest stable amino acid.

Traditional methods of synthesising glycine have relied heavily on petroleum-derived products such as aldehydes and cyanides. These methods not only consume a significant amount of energy but also produce substantial waste, leading to environmental pollution.

The elements carbon, nitrogen, hydrogen, and oxygen, essential for amino acids, can all be sourced from carbon dioxide, water, nitrogen and oxygen in the air.

In their study, researchers from USTC and the University of Electronic Science and Technology of China produced an electrochemical catalysis process that began with air, paving the way for an eco-friendly method of synthesising amino acids.

Many scientists believe that life on Earth originated through chemical reactions in clouds, with lightning providing the electricity to drive the synthesis of amino acids from air and water.

As the reactions became more complex, they eventually transformed non-living matter into complex life forms, according to this view.

In the Miller-Urey experiment of 1952, scientists at the University of Chicago simulated Earth’s primitive atmosphere by sealing water, methane, ammonia and hydrogen in a container and applying electrical charges to mimic natural lightning.

After one week, they detected several amino acids in their final products, showing a potential origin for living molecules.

“The experiment simulated the generation of primitive life molecules, but the products were mixed, containing several amino acids,” Zeng said. “We have achieved the directional synthesis of single amino acids – glycine – through an innovative pathway design.”

The synthesis process consisted of three main parts: CO2 conversion, N2 fixation, and targeted C-N coupling.

First, carbon dioxide was converted into oxalic acid, then reduced to glyoxylic acid; nitrogen gas was synthesised into ammonia and then into hydroxylamine, which spontaneously reacted with the glyoxylic acid through electro-reduction to produce glycine.

Each step involved key catalysts and reaction devices. “The nitrogen fixation step, for instance, employed a lithium-mediated method that utilises the reactivity of metallic lithium to transform inactive nitrogen into lithium nitride, and subsequently into ammonia,” said Zeng, adding that the method was similar to how lithium batteries work through chemical reactions.

After less than a day of steady electrolysis, the research team was able to synthesise about 5.16 grams (0.18 of an ounce) of highly pure solid glycine in the lab using just air and water.

Zeng was very pleased with the results. “Typical organic synthesis reactions yield products in milligrams, but we made enough glycine to hold in the palm of your hand.”

The findings were published at the end of August in the peer-reviewed journal, Angewandte Chemie International Edition.

The study not only supports theories about the origin of life but also provides an eco-friendly pathway for synthesis – no pollution is generated, and the energy efficiency throughout the process reached 5.9 per cent, which compares with typical 2 to 3 per cent efficiency for natural plant photosynthesis.

Zeng has also experimented with using carbon dioxide to chemically and biologically synthesise glucose.

“We chose glycine because of its simpler structure among amino acids. Our team might explore the synthesis of more complex amino acids from natural materials in the future,” he said.

“By combining glucose and amino acids, the most basic biological molecules, we have an opportunity to explore the synthesis of more complex biological molecules from scratch, which is of vital importance.”

China Resources Beverage shares rise in Hong Kong trading debut as IPO momentum returns

https://www.scmp.com/business/banking-finance/article/3283450/china-resources-beverage-shares-rise-hong-kong-trading-debut-ipo-momentum-returns?utm_source=rss_feed

(Holdings) Company’s shares advanced in their trading debut in Hong Kong, as the momentum of initial public offerings (IPO) gather pace in one of the busiest weeks this year for the local exchange, which may raise up to US$1.3 billion.

Trading under the code 2460, CR Beverage jumped 13.8 per cent to change hands at HK$16.50, from its IPO price of HK$14.50, when Wang Xiangming, the chairman of the company’s parent, struck the ceremonial gong to mark the debut.

The Shenzhen-based company raised HK$5.04 billion (US$650 million) after offering its stock at the top end of an expected price range. The stock attracted bids that exceeded the available shares by 234 times, an oversubscription that may encourage CR Beverage to exercise an option to offer another 52.2 million shares. The so-called greenshoe option may swell the IPO proceeds to as much as US$747 million.

The IPO attracted nine cornerstone investors who were slated to buy US$310 million worth of shares, according to the term sheet. UBS Asset Management would take up about a third of the cornerstone block.

Other investors include China Travel Service Holdings, Wildlife Willow, China Post Life Insurance and Oaktree Capital Management.

Nearly a third of the fundraising will go toward strategic expansion, production and supply chain optimisation, according to the company. The rest will go toward research and development, digitalisation, mergers and acquisitions and other corporate purposes, it said.

CR Beverage was one of the first companies to enter the packaged drinking water business in China. It has grown to become the sector’s second-largest bottler after Nongfu Spring, which was listed in Hong Kong through a US$1.01 billion IPO in September 2020.

Asia’s stock markets have experienced their busiest week of new listings in more than two years, with another multimillion dollar new listing on Thursday by . The autonomous-driving technology firm is looking to raise as much as HK$5.4 billion.

Around 20 companies from Asia-Pacific are listing shares through Friday in deals that may raise as much as US$8.3 billion (HK$64.7 billion), the biggest week since April 2022, according to data compiled by Bloomberg. The supply includes deals from China, India and Japan, underscoring the broad revival across the region.

Hong Kong’s pick up of activity comes after Midea Group’s blockbuster IPO in September boosted sentiment coupled with a rally in Chinese stocks after .

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China and Vatican agree to extend deal on bishop appointments for 4 more years

https://www.scmp.com/news/china/diplomacy/article/3283452/china-and-vatican-agree-extend-deal-bishop-appointments-4-more-years?utm_source=rss_feed

China and the Vatican have agreed to extend an agreement concerning the appointment of Chinese bishops, the two parties said on Tuesday.

Chinese foreign ministry spokesperson Lin Jian told a regular press briefing in Beijing that both parties had decided to extend the agreement by four years after “friendly consultations”.

“The two sides will maintain talks with a constructive spirit and continue to promote the improvement of China-Vatican relations,” Lin said.

Separately, the Vatican said it “remains dedicated to furthering the respectful and constructive dialogue” with China for the “benefit of the Catholic Church in China and the Chinese people as a whole”.

The agreement was reached in 2018 and has since been renewed in 2020 and 2022.

It gives the Chinese authorities and Beijing-sanctioned churches the power to nominate a pool of candidates, before they are vetted by the Vatican for the Pope’s consideration.

In theory it still means the Pope has the final say in the selection of Chinese bishops. However, the specific terms of the agreement have never been made public.

The agreement ended a 60-year tug of war between the Holy See and Beijing, which began when mainland authorities ordained two bishops in 1958 without papal approval.

Under the 2018 agreement, the Pope is recognised for the first time by Beijing as universal head of the Roman Catholic Church, including in China.

China has an estimated 12 million Catholics, divided between a government-run association whose clergy are chosen by the Communist Party and a church that swears allegiance to the Vatican.

Supporters of the agreement say it will help unify the two churches but critics said it has “sold out” long-suffering members of the underground church on the mainland, some of whom served long jail terms for remaining loyal to Rome.

Pope Francis has also faced criticism from within the Catholic Church – including from some cardinals – for sharing authority with a communist state.

In 2020, when China and the Vatican were considering renewing the deal, then US secretary of state Mike Pompeo called on Pope Francis to speak out against human rights violations and persecution in the country.

In May this year, Cardinal Pietro Parolin, the Vatican’s Secretary of State, hosted Shanghai Bishop Joseph Shen Bin at an event to mark the centenary of the Concilium Sinense, a landmark meeting in Shanghai a century ago that affirmed the need for foreign missionaries in China to give way to local church leaders.

The Vatican, which does not have official diplomatic relations with Beijing, has said it hopes to set up a permanent office in mainland China. Meanwhile Beijing has said it hopes to see a “continuous improvement” in relations.

Vietnamese lobsters claw back to prominence in China after temporary dip

https://www.scmp.com/economy/china-economy/article/3283415/vietnamese-lobsters-claw-back-prominence-china-after-temporary-dip?utm_source=rss_feed

Chinese imports of Vietnamese lobster expanded 33 times in the first nine months of this year compared to last, as low prices and stronger trade links converged to sate the country’s voracious appetite for the chitinous creatures despite laggard figures for consumption as a whole.

Vietnamese lobster imports totalled US$205.87 million from January to September, a 3,285 per cent increase over the first nine months of last year and 37 per cent of all shipments, according to China’s General Administration of Customs.

In September, China’s lobster imports from Vietnam increased 133.9 per cent compared to the previous month- and 2,336 per cent on a year-on-year basis.

Overall lobster imports increased by 40.86 per cent year on year, reaching US$558.24 million over the same time frame, while import prices decreased by 23 per cent.

The spike means Chinese consumers still have a craving for high-end foods despite hesitancy in overall spending, analysts said, adding Vietnam’s import costs are relatively low because of differentials in labour and shipping.

“Consumption may be weakening, but there’s a portion of consumers who are wealthy and unaffected,” said Zhao Xijun, a professor of finance at Renmin University in Beijing.

As domestic aquaculture is unable to produce enough of the animals to meet the country’s demand – and Vietnamese products are cheaper – Zhao said a boost to imports from China’s Southeast Asian neighbour is a simple remedy for the shortfall.

The figures are a marked contrast to consumer confidence – which weakened in August compared to July under the yoke of a lingering property crisis – though retail sales ticked up 3.2 per cent last month over September 2023.

A 1,281km land border with China keeps Vietnam’s shipping costs low compared to more distant exporters such as Australia and Canada, analysts said.

“I think it’s all down to cheap, cheap, cheap,” said Frederick Burke, the American Chamber of Commerce’s Vietnam representative to the Vietnam Business Forum management board.

The crustaceans can be shipped fresh within a day, making them a viable option for the discerning Chinese palate, said Jack Nguyen, CEO of the professional services firm InCorp.

Vietnam’s lobsters clawed their way back onto Chinese menus last year after a suspension, according to the Ho Chi Minh City-based trade group Vietnam Association of Seafood Exporters and Producers.

In October 2023, the group’s website says, China stopped importing the once-popular Vietnamese ornate spiny lobsters over a potential conflict with wildlife protection laws.

Consequently, customs data shows, the market share of Vietnamese lobsters in China fell rapidly – from 38.83 per cent in 2022 to 1.7 per cent last year.

China generally relaxed seafood import regulations as the pandemic eased, the trade group’s managing editor Phung Thị Kim Thu said on Tuesday.

Subsequent two-way deals plus the Regional Comprehensive Economic Partnership Agreement’s (RCEP) trade liberalisation rules helped “facilitate” the expansion of lobster exports, Thu said. China and all of Southeast Asia belong to RCEP.

Bilateral trade ties, sometimes tested by flare-ups over maritime sovereignty, got another lift in November when Chinese Minister of Commerce Wang Wentao met Vietnamese Prime Minister Pham Minh Chinh. The two held talks in Vietnam that were expected to help shippers of what Wang called “high-quality” Vietnamese products.

China is also set to restart the import of Australian lobsters. During the recent Asean regional forum in Laos, Beijing and Canberra agreed to lift a nearly four-year moratorium on lobster shipments by the end of the year.

In 2019, the last full year with data recorded, over half of China’s lobster imports came from Australia.

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