Mistral点评

• Mexico weighs whether to impose tariffs on e-commerce Chinese imports
• China’s Xi seeks closer ties with Finland on green energy, peace plan for Ukraine
• US-China talks essential to avoid ‘irreversible’ consequences, report warns
• China eager to resolve EU’s ‘divide and conquer’ tactics during EV talks: analysts
• EU to go ahead with tariffs on Chinese EVs after failure in talks
• Timing is everything: China-India border deal is a victory for Russia’s Vladimir Putin
• How election lies and China fears lead to bad outcomes for the US
• ‘Trump victory’ meme stock surges in China as buzzwords outweigh fundamentals
• China-South Korea ties: empty ambassador chair highlights complications in relationship
• Chinachem wins Hong Kong land tender with US$131 million bid amid subdued sentiment
• South Korean national arrested in China on suspicion of espionage
• Angelababy among leading China stars to undergo significant physical transformations
• China sharpens edge in global trade with zero-tariff deal for developing world
• Trump says ‘100%, yes’ he will get jailed Hong Kong ex-tycoon Jimmy Lai out of China
• China smartphone market to close 2024 with first annual sales growth in 5 years: report
• [Sport] TikTok founder becomes China's richest man
• South China Sea: can the Philippines emulate China-India border deal to defuse tensions?
• China eyes ‘birth-friendly society’ with population stimulus next on the agenda
• Boy in China gives own lunches to mentally impaired mum, eats leftovers, prompting donations
• China to send youngest crew, including nuclear rocket scientist, to space station
• US to ‘reap what it sows’ with ban on China tech investment: Hong Kong’s John Lee
• Is Indonesia’s ‘big brother’ role in South China Sea dispute a model for the Philippines?
• China takes down fake news about its military, closes social media accounts
• China calls for closer Asean cooperation to lower biosecurity and bioweapons risks
• China driver buys used US$14,000 Tesla, finds it will not charge, tows with ox in protest
• Brazil backs away from joining China’s belt and road but keeps funding door ajar
• Will China cut personal income taxes as part of its stimulus drive?
• Mexico warns US ban on Chinese car tech could hurt its automotive industry
• US to ban outbound investments in China’s semiconductors, AI over national security
• Will next US president be able to drive a wedge between Russia and China?

Mexico weighs whether to impose tariffs on e-commerce Chinese imports

https://www.scmp.com/news/china/diplomacy/article/3284385/mexico-weighs-whether-impose-tariffs-e-commerce-chinese-imports?utm_source=rss_feed

Mexican President Claudia Sheinbaum is considering imposing tariffs on small imported goods from China to boost revenue and protect jobs in domestic industries, local media reported on Tuesday.

Officials are seeking new revenue sources to address the nation’s budget deficit and financial obligations inherited from her predecessor, Andres Lopez Obrador, according to the newspaper El Universal.

The proposed tariffs would target products bought through Chinese e-commerce platforms including Temu, Shein, AliExpress and Alibaba, according to the report.

AliExpress and Alibaba are subsidiaries of Alibaba Group Holding Limited, which owns the South China Morning Post.

Officials told El Universal that the websites had circumvented import duties and often evaded local taxes while failing to meet technical standards required for domestic manufacturers.

Governmental data show that this year Mexico will face its largest budget deficit in more than 30 years, reaching 5.9 per cent of its gross domestic product.

Sheinbaum aims to reduce this to 3 per cent next year, which will require significant spending restraint and additional tax income. She has reportedly tasked Finance Secretary Rogelio Ramirez de la O with finding new revenue sources while maintaining social programmes.

Ramirez de la O has previously cited potential economic measures against China, accusing Beijing in July of increasing its global exports “at the expense of North America”.

He said that Sino-Mexican trade relations were “not reciprocal” and that it was “only logical to expect that both Americans and Mexicans demand our fair share of this global demand”.

According to El Universal’s sources, the “unfair competition” from the Chinese e-commerce platforms had eliminated at least 20,000 textile industry jobs, reducing apparel manufacturing by 8 per cent.

The National Association of Self-Service and Department Stores trade group also accused the Chinese platforms of selling products that violated intellectual property rights and unregulated goods, including cosmetics.

None of the cited companies responded to requests for comment. The Mexican Finance Secretariat could not be reached for comment.

Any new tariffs, with rates yet to be determined, would be part of the 2025 economic package developed by Ramirez de la O, Economy Secretary Marcelo Ebrard and tax administration chief Antonio Martínez Dagnino. According to law, the plan must be submitted to Mexico’s Congress by mid-November for approval.

It would also penalise Chinese companies that bypass Mexico’s import tracking system, which was instituted this month to prevent fraud. Companies violating rules more than three times monthly would face tax penalties.

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China’s Xi seeks closer ties with Finland on green energy, peace plan for Ukraine

https://www.scmp.com/news/china/diplomacy/article/3284370/chinas-xi-seeks-closer-ties-finland-green-energy-peace-plan-ukraine?utm_source=rss_feed

China aims for closer cooperation with Finland on new energy sectors as well as finding a peaceful solution to the Ukraine crisis, President Xi Jinping told his Finnish counterpart Alexander Stubb in Beijing on Tuesday.

According to China’s state-owned broadcaster CCTV, Xi vowed closer links with Finland on “green transformation”, information technology, the digital economy and artificial intelligence (AI), as well as new energy and “other emerging industries”.

He also pledged to further expand “humanistic exchanges”, including visa-free entry to China for Finnish nationals to promote “people-to-people” exchanges with the Nordic country.

Stubb, the first Finnish leader to visit China in five years, also highlighted the need for peace in Ukraine in his opening remarks, while accusing Russia of having “violated international law”.

“Right now we are very much in a situation whereby Russian aggression has violated international law,” Stubb was quoted as saying by Reuters. “I look forward to discussing peaceful solutions on that path as well.”

Other areas of collaboration highlighted by Xi included climate change, biodiversity, global sustainable development, and AI intelligence governance.

As for Ukraine, Xi said China would “continue to play an active role in promoting a peaceful resolution of the crisis”, maintaining Beijing’s customary diplomatic response amid international pressure to leverage its close Moscow ties to help end the war.

Apart from meetings with top Chinese officials including Xi and Premier Li Qiang in Beijing, Stubb’s four-day state visit will also take him to Shanghai where he will hold talks with the city’s Communist Party chief, Chen Jining.

Stubb visited Beijing’s Tsinghua University earlier on Tuesday and will also stop at Shanghai’s Fudan University to boost bilateral collaboration in vocational education and scientific research.

Tuesday’s agenda included a China-Finland business forum to boost bilateral economic ties. According to China’s state news agency Xinhua, more than 100 Finnish and Chinese government and business circles attended the meeting led by Stubb and Chinese Vice-President Han Zheng.

Stubb will also attend a business summit with Finnish and Chinese companies in Shanghai.

His trip comes amid a fresh crisis since the February 2022 Russian invasion of Ukraine, with North Korea reportedly sending frontline troops to support the Russian military. China’s close ties to both Moscow and Pyongyang are seen to make it a crucial leverage holder.

In an interview with Bloomberg in July, Stubb said Russia was “so dependent on China right now” that “one phone call from President Xi Jinping would solve this crisis”.

“If he [Xi] were to say, ‘Time to start negotiating peace’, Russia would be forced to do that,” Stubb said. “They would have no other choice.”

Finland, a member of the European Union, shares a 1,340km (832-mile) border with Russia. In May 2022, three months after the invasion of Ukraine, Finland applied to become a Nato member and officially joined the bloc in April last year. Finland’s inclusion more than doubled the Nato border with Russia, which has cited the bloc’s eastward expansion as a reason for its military campaign in Ukraine.

Apart from the Ukraine crisis, EU-China relations are also facing challenges on the trade front, with Brussels calling for reducing dependence on the Chinese supply chain and accusing Beijing of flooding EU markets with cheaper new energy goods amid state-funded “overcapacity”.

Like most EU members, Finland has posted a significant trade deficit in recent years with China, even though the world’s second-largest economy remains its key Asian trading partner.

According to official Chinese data, bilateral trade last year amounted to US$8.2 billion, down 16.5 per cent from 2022.

Finland’s trade deficit with China for the period was US$1.7 billion.

China’s strong trade relations with Russia since the invasion of Ukraine have prompted Western leaders to question Beijing’s proclaimed position of neutrality.

In an exclusive interview with the South China Morning Post in May, Finnish foreign trade and development minister Ville Tavio said EU-China relations would “get only better” despite Brussels’ move to de-risk from Beijing. However, Chinese leaders would need to build trust with the bloc’s business entities that had burned their fingers in Russia.

The de-risking discussion “comes from the companies themselves”, he said. “When Finland has invested in Russia, and we have lost those investments, because of Russia’s behaviour, I think it is natural that China would only gain to keep on building the trust.”

Finland could also be a potential key player in China’s ambitions of scientific exploration in the Arctic.

Last week, Beijing said it was planning to send a crewed submersible to explore the Arctic seabed.

Meanwhile, Finland has sought to deepen polar cooperation with the United States. The US has expressed concerns about China’s growing Arctic presence – especially in collaboration with Russia – and has been working to boost its own shipbuilding abilities.

Earlier this year, the US, Canada and Finland announced a joint project to develop polar vessels, including icebreakers.

Tavio also said that Finland would like to maintain cooperation with China under the Arctic Council framework, but its increasingly close relations with Russia was likely to become an obstacle.

US-China talks essential to avoid ‘irreversible’ consequences, report warns

https://www.scmp.com/news/china/diplomacy/article/3284372/us-china-talks-essential-avoid-irreversible-consequences-report-warns?utm_source=rss_feed

China and the United States should discuss “a wide range of strategic stability issues” to built trust and avoid “irreversible consequences”, analysts from both countries have said.

The report, from the Beijing-based think tank Grandview Institution, warned that the two sides’ different understandings of “strategic stability” could hinder effective communication, but it said finding common ground is essential if the two nuclear powers are to prevent misunderstandings.

“It is imperative for China and the United States to engage in dialogue on a wide range of strategic stability issues in the future,” said the authors in a report published a week before the US presidential election.

The study was written by Zhu Junwei, director of the Centre for American Studies at the Grandview Institution, David Allison, an associate of the Project on Managing the Atom at Harvard Kennedy School, and Alexandre Debs and Arne Westad from Yale University.

Although high-level military talks have been intensifying in recent months, it was confirmed in July that talks on arms control and nuclear non-proliferation had been halted.

Both sides realise that ensuring strategic stability has extended beyond nuclear weapons, the report said, but there is a considerable gap on what broader security issues must be discussed.

They said the US does not think its nuclear units and early warning systems near China—an area of significant concern for Beijing— need to be discussed, while Washington is concerned about China’s military and technological buildup and its disputes with neighbouring countries over the South China Sea.

The report also said that because China has a much smaller nuclear arsenal, arms control talks along the lines of those held between Washington and Moscow during and after the Cold War are unlikely, but progress is possible if talks do not involve limiting China’s nuclear capabilities or disarmament.

The authors expect that future talks on strategic stability will aim to improve understanding and “avoid crises or even irreversible consequences arising from misperception and miscalculations”.

They also argued that setting up a dialogue mechanism could become a “source of mutual trust” between Beijing and Washington.

The report said this could start with clarifying key principles such as the two sides’ nuclear policies, nuclear strategies and related doctrines and regulations.

Given current geopolitical challenges, it will also be necessary to include regional hotspots - such as Taiwan, the South China Sea and the Korean Peninsula - in their talks.

Shen Dingli, a senior research fellow with Grandview Institution, told a launch event that the two sides should discuss nuclear arms controls – but not disarmament – to cap future strategic build-ups.

“Whatever the outcome of the US presidential election, we should [talk] with the US government and we should also [have] many strategic stability talks,” he said. “The more talks, the more arms control, the more stability we and the world would have.”

He also said that regardless of whether Kamala Harris or Donald Trump becomes the next US president, the two countries should honour a commitment made about a decade ago for each side to notify the other ahead of a major military action.

China eager to resolve EU’s ‘divide and conquer’ tactics during EV talks: analysts

https://www.scmp.com/economy/global-economy/article/3284317/china-eager-resolve-eus-divide-and-conquer-tactics-during-ev-talks-analysts?utm_source=rss_feed

China is anxious to fend off the European Union’s “divide and conquer” tactics during their electric vehicle (EV) tariff negotiations to maintain a united front and steer future talks, analysts said.

Chinese EV manufacturers should, they added, also not be influenced as the EU insists on the right to approach firms individually.

China and the EU have said that headway has been made, with both sides set to continue exchanges next month, focusing on price commitments.

But separate discussions that bypass Beijing’s overall strategising may complicate collective talks as they enter a crucial stage, analysts said.

“This is the EU’s bid to lure some Chinese EV firms to transfer tech and production,” said Wang Yiwei, director of the Institute of International Affairs at the Renmin University of China.

“The bloc may dangle lower tariffs or other favourable treatments in one-on-one interactions.

“If so, cracks will appear in Beijing’s overall response to tariffs at this important juncture.”

The bloc’s punitive import tariffs of up to 35.3 per cent on Chinese-made EVs are set to kick in by the end of the month, capping a year-long anti-subsidy investigation.

“There must be discipline in place for the sake of future negotiations and the sector’s common interests and only semi-official industrial chamber can represent the overall position of the industry [in collective talks],” added Wang, who is also a former diplomat at the Chinese Mission to the EU.

He added that China’s strength in the EV industry has evolved from national strategies and a complete industrial chain.

“An individual producer may no longer be competitive once it acts on its own,” he said.

China’s Ministry of Commerce on Monday warned against separate talks, saying they would undermine trust and continued efforts to resolve the issue.

An official from the ministry said the China Chamber of Commerce for Import and Export of Machinery and Electronic Products is the sole representative with full authorisation from Chinese enterprises to propose a price commitment plan.

The European Commission said on Friday that it has a “legitimate right” under World Trade Organization (WTO) rules to approach individual Chinese EV firms involved in the investigation and that its talks with the semi-official Chinese chamber do not exclude other interactions.

Beijing, though, warned that concurrent and separate negotiations would make future implementation and supervision of the price commitment agreement more costly.

Minister of Commerce Wang Wentao made China’s point clear in a video conference with European Commission executive vice-president and trade chief Valdis Dombrovskis on Friday.

The State-owned GAC Group and New York-listed EV maker Xpeng have vigorously refuted groundless rumours that they had huddled together with EU negotiators to explore separate deals, and vowed to always act in the overriding interests of the entire sector.

Huo Jianguo, vice-president of the China WTO Research Association, said the EU should also realise that the chamber’s sole presence in talks could ensure implementation.

“China had already proposed a price commitment plan in August. Once a universal deal is signed with the EU, the chamber can ensure it will apply to all manufacturers,” Huo said earlier this month.

“Companies should avoid unilateral actions and the EU should demonstrate its goodwill and maintain a good negotiation environment.”

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EU to go ahead with tariffs on Chinese EVs after failure in talks

https://www.scmp.com/news/china/diplomacy/article/3284374/eu-go-ahead-tariffs-chinese-evs-after-failure-talks?utm_source=rss_feed

The European Union will impose duties on Chinese-made electric vehicles this week, after talks to Beijing failed to reach a deal that would have halted their passage.

In a final ruling published on Tuesday, the European Commission confirmed that a top rate of 35.3 per cent would be applied to EVs from the state-owned company SAIC and its subsidiaries, on top of a baseline 10 per cent duty that applies to all EV imports.

The ruling is expected to be written into EU law by Wednesday, the final procedural deadline for imposing the duties. They are then expected to enter force a day later.

Chinese firms BYD and Geely, plus their subsidiaries, will pay lower additional duties of 17 per cent and 18.8 per cent, respectively. For Tesla, which cut a side deal with the European Commission, the rate is 7.8 per cent.

Other companies deemed to have cooperated with the EU’s anti-subsidy probe will pay a rate of 20.7 per cent, while those found to have been uncooperative will pay the maximum 35.3 per cent.

The ruling follows last-minute efforts to avert the tariff plan that had played out in recent days.

China’s Ministry of Commerce said over the weekend that technical negotiations had resumed. These were aimed at negotiating a settlement whereby the tariffs would be reduced or stopped in exchange for companies agreeing to a minimum price on EV sales in the EU.

However, those talks foundered amid disagreement on how such a price undertaking agreement would work. Beijing wanted a blanket deal to be applied to all companies through a state-backed chamber of commerce, whereas the commission preferred to negotiate with individual companies.

Negotiations are expected to continue, even after the tariffs are in place. This would ensure that any breaches of price undertaking agreements that are reached in the future would automatically trigger the imposition of tariffs.

Timing is everything: China-India border deal is a victory for Russia’s Vladimir Putin

https://www.scmp.com/news/china/diplomacy/article/3284359/timing-everything-china-india-border-deal-victory-russias-vladimir-putin?utm_source=rss_feed

It should not come as a big surprise that China and India finally came to their senses and agreed to end their four-year-old border hostilities, at least for now.

But the timing of the detente – which occurred during a Russia-hosted event ahead of the US presidential election next week – is rather curious.

New Delhi announced on Monday last week an agreement on pulling back troops from two disputed points in eastern Ladakh of their Himalayan frontier and subsequent patrolling arrangements, which Beijing confirmed the next day.

Then, President Xi Jinping and Prime Minister Narendra Modi met on Wednesday for their first formal talks in five years on the sidelines of the Brics summit in Russia’s southwestern city of Kazan.

It bore striking similarities to the previous border crisis at Doklam seven years ago, which also ended just in time for Modi to travel to Xiamen in southeast China’s Fujian province to meet Xi during the 2017 Brics summit.

The Doklam stand-off, which lasted for more than 70 days in the remote Himalayan tri-junction area of Sikkim, Tibet and Bhutan, clearly paled in comparison to the current Ladakh dispute, especially in terms of its geopolitical implications.

Following the deadliest clash in over 50 years in June 2020, which resulted in the deaths of 20 Indian soldiers and at least four Chinese troops, the dispute escalated into a Cold War-style confrontation between the Asian rivals, with New Delhi effectively taking Washington’s side against Beijing.

Not surprisingly, as in the past, details of the border deal have remained largely unclear. Experts and media outlets on both sides are fiercely debating which side may have made what concessions and whether an agreement could lead to the de-escalation of broader tensions and even a reset of bilateral ties.

But the ways in which both sides managed to prevent the dangerous military face-offs spiralling into an armed conflict were largely similar, thanks to the belated intervention of top leaders, which analysts described as a feature of the “leadership-led relationship” between the world’s two most populous nations.

While it is commendable for the two giants, which in 1962 fought a bloody border war, to put aside their almost insolvable border dispute, it is also intriguing to see Russia emerge with a potential role in the latest China-India border agreement.

It’s no secret that Russian President Vladimir Putin, who maintains friendly ties with both Xi and Modi despite Moscow’s invasion of Ukraine, has been keen to help defuse the prolonged border tensions between Beijing and New Delhi.

In 2021, Putin said that both Xi and Modi were “responsible” leaders capable of solving the issue without the interference of an “extra-regional power”, in a veiled reference to Washington and the Quad, a US-led grouping of India, Japan and Australia with a focus on China.

Over the years, Moscow has quietly used behind-the-scenes diplomacy and a trilateral diplomatic mechanism to host talks between Indian and Chinese diplomats and military officials.

“We are interested in these two great nations to be friends and we are trying to be helpful,” said Russian Foreign Minister Sergey Lavrov last year when commenting on Moscow’s role in the China-India border dispute.

For Putin and his increasingly isolated Russia, the detente between Beijing and New Delhi during the Kazan Brics summit under his watch was no doubt a victory.

Russian ambassador to India Denis Alipov denied this week that Moscow played “any role” in easing the meeting between Modi and Xi, while calling the end of their Himalayan border hostilities “a positive development”.

However, Putin’s rather constructive role on the India-China border row stands in sharp contrast to the role his country has been playing in many other parts of the world – from Ukraine and the Middle East to the Indo-Pacific and Africa.

Reports that North Korea is sending troops to help Russia fight against Ukraine and speculation about Moscow’s possible role in the escalation of the Israel-Iran confrontation are particularly worrying.

While Russia is said to have been severely weakened by the grinding war in Ukraine and its near-wrecked relations with the US-led West, Moscow remains a disruptive force to be reckoned with, especially when considering its ability to stir chaos and hostilities.

The fact that both China and India are willing to give Putin credit for his mediation efforts says a lot about Moscow’s remaining influence in an increasingly chaotic and volatile world.

With former US president Donald Trump’s possible return to the White House, Putin may be further emboldened to challenge the Washington-centred Pax Americana, along with authoritarian allies such as China, Iran and North Korea.

In this sense, it is not unfathomable that Putin’s Moscow, desperate to distract the US-led West from the war in Ukraine and the Middle East, may be keen to open a new battlefield in East Asia by inciting Pyongyang to provoke a proxy war on the Korean peninsula.

The last two months of 2024 will see elevated risks and heightened instability, with the future of the US and even the world uncertain pending the results of the American presidential election.

But it may not be all good news for Beijing, which has so far chosen to ally with Putin’s Russia and North Korea’s Kim Jong-un against the US and the Western world as a whole.

After all, like Trump, Putin and Kim are transactional leaders, and it is not beyond the realm of possibility that they could one day be open to an anti-China alignment with Washington – if the conditions are right.

How election lies and China fears lead to bad outcomes for the US

https://www.scmp.com/opinion/world-opinion/article/3284260/how-election-lies-and-china-fears-lead-bad-outcomes-us?utm_source=rss_feed

The Big Lie has become bigger. The false claim of a stolen 2020 US presidential election embraced by former president Donald Trump and his cult has brought about the end of fact-based accountability. This is having profound and lasting implications on a deeply troubled Sino-American relationship.

Sinophobia is a visible manifestation of how the Big Lie has corrupted norms of the American body politic. Irrational fears of China have taken on a life of their own.

That includes any of a number of alleged threats to the United States: China’s large share of the US trade deficit; the feared back door of Huawei’s 5G network; Chinese-made electric vehicles (EVs) and dock-loading cranes; the vulnerability of US infrastructure to a so-called Volt Typhoon hacking network; and the potential of TikTok to assault the character and privacy of innocent American teenagers.

I have argued that these fears stem from false narratives aligned with America’s anti-China political agenda. Such narratives are not pulled from thin air. They reflect projections from the distorted facts of what academic psychologists call a “narrative identity”, which reconstructs the autobiographical past.

In the US, that past unfortunately reflects a toxic strain of identity politics traceable to a long history of racial and ethnic prejudice. To be sure, as I also detail in my book, China is equally guilty of embracing and promoting false narratives about America to suit its own purposes.

In examining the corrosive effect of false narratives on the China debate in the US, I have stressed the distinction between the potential to inflict harm based on circumstantial evidence and conjecture and the intent to do so based on the “smoking gun” of hard evidence. The exaggerated fears of Sinophobia largely fall into the former category.

For example, US Secretary of Commerce Gina Raimondo asked Americans to imagine what might happen if Chinese EVs were turned into destructive weapons on US highways. FBI director Christopher Wray warned of an attack on critical infrastructure if China decides to activate its embedded malware.

Fears that mainland China will attack Taiwan in 2027 reflect a dated hunch by retired admiral Phil Davidson, former head of the US Indo-Pacific Command. The key words – imagine, if and hunch – speak volumes to the dangers of acting on conjecture.

But that hasn’t stopped US politicians. Recent hearings of the House Select Committee on the Strategic Competition Between the United States and the Chinese Communist Party are reminiscent of the red-baiting used by the House Un-American Activities Committee during the 1950s to target alleged Communist sympathisers. The House’s penchant for conjecture also spurred the recent passage of 25 anti-China bills – a rare flurry of legislative activity in late September now known as “China week”.

The Big Lie has precipitated an even more troubling outcome: false narratives are no longer spun out of fact-based fragments of narrative identities. False narratives have become outright lies.

Consider recent press reports of the espionage indictment of five Chinese graduates from the University of Michigan for taking photos near a US National Guard training exercise that involved Taiwanese military personnel. The reports turned out to be exaggerated: the five men were charged not with espionage but with lying to the police.

This news item has Sinophobia written all over it. It resulted in a Republican state senator in Michigan attempting to scrap subsidies for a new US$2.4 billion battery component plant to be built by a US subsidiary of Gotion High-tech, a Chinese company. Never mind that Gotion’s largest shareholder is Volkswagen, not the Communist Party of China, as US politicians allege. The company has become an election issue in swing state Michigan.

The Big Lie also shows up in other aspects of Sinophobia. Last year, FBI director Wray, a Trump acolyte with well-established anti-China credentials, sounded a very public alarm that “China already has a bigger hacking programme than every other major nation combined.”

Maybe not. According to the new World Cybercrime Index compiled by researchers at the University of Oxford, the world’s top cybercrime threats originate from, in descending order, Russia, Ukraine, China, the US, Nigeria, Romania, North Korea and the United Kingdom. In fact, China only narrowly beat out the US for third place.

I am not arguing that China or any other foreign actor should be ignored as a potential threat to American cybersecurity. Rather, senior US officials must be more transparent about the global scope of cyberhacking – and own up to America’s role in propagating it.

As lies replace truth, Sinophobia not only destabilises the world’s most important bilateral relationship, it also results in serious policy blunders. Just as the US government once blamed Japan for America’s trade deficit, now it has directed its ire at China, imposing high – and possibly even higher – tariffs on Chinese imports. Never mind that bilateral action cannot eliminate a multilateral trade deficit stemming from a domestic savings shortfall.

The results can be perverse and self-destructive. The US is effectively banning Chinese-made EVs precisely when it needs cost-efficient, high-quality green technologies to address climate change. And exaggerated fears of China’s cyberhacking are dominating the legislative agenda.

Thanks to the Big Lie, facts are in short supply as the US approaches its most consequential presidential election in modern history. This raises a deeper question: what comes next? The Big Lie has ushered in a climate where facts are no longer a prerequisite for political discourse and policymaking. That jeopardises the future of all Americans. One can only hope voters bear this in mind when casting their ballots.

‘Trump victory’ meme stock surges in China as buzzwords outweigh fundamentals

https://www.scmp.com/economy/global-economy/article/3284347/trump-victory-meme-stock-surges-china-buzzwords-outweigh-fundamentals?utm_source=rss_feed

Some of China’s retail investors are once again betting on a Shenzhen-listed stock with a company name suggesting that former US president Donald Trump will be victorious in his re-election bid, driving shares up to the daily limit for two consecutive days.

Shares of Wisesoft, a producer of air-traffic-control software, surged 10 per cent on both Monday and Tuesday. Meanwhile, the CSI300 index that tracks blue chip stocks in Shanghai and Shenzhen rose 0.2 per cent and fell 1 per cent, respectively.

The stock has doubled to 19.98 yuan (US$2.80) over the past month, against an around 20 per cent rise of the index on China’s stimulus plan.

The privately controlled Wisesoft – whose Chinese name “Chuan Da Zhi Sheng” resembles “Trump victory” – is sometimes regarded by some retail investors as a “Trump concept stock”, despite more than 90 per cent of its revenue being made in China and with little business ties with America.

And this is not the first time the company has ridden a Trump-related wave. In June 2015, just days before Trump formally announced his candidacy for the Republican nomination ahead of the November 2016 election, the stock skyrocketed to more than 47 yuan a share before tanking to 16 yuan in less than a month.

What followed was a roller coaster of ups and downs that eventually tapered off by early 2018, and the stock has remained under 20 yuan ever since.

“It’s fair to say that China’s stock market still lacks maturity, and investors often act irrationally,” said Wang Zichen, a research fellow at the Centre for China and Globalisation, a non-governmental think tank in Beijing.

Third-quarter revenue for the Sichuan-based company dropped by 2.43 per cent, year on year, with its loss expanding by 30 per cent to nearly 10 million yuan (US$1.4 million), according to its exchange filing.

Interest in the US presidential election is obvious, but “the attention itself is very unorthodox or even nonsensical”, Wang added.

Sichuan University owns 6.97 per cent of Wisesoft as its No 2 shareholder, and Morgan Stanley owns 0.56 per cent as the ninth-largest shareholder.

Its recent performance is the latest example of China’s A-share market’s quirky streak, where retail investors often drive up stock prices on perceived connections, directly or indirectly, rather than business fundamentals, when a technology, policy shift, or global event becomes a hot topic.

China has more than 200 million retail investors.

The US presidential election will be held next Tuesday. Recent US polls show Trump is in a tight race with Democratic nominee Kamala Harris, the current vice-president.

Wisesoft also saw a brief spike in interest after the July 13 assassination attempt on Trump, when he was shot in the ear and photos showed him bloodied but resolute, raising his fist while being ushered to safety.

The market reacted quickly, and after trading opened on Monday, July 15, the stock surged to its upper trading limit. But the gains were erased in just two days.

Goertek, a Chinese acoustic-components company listed on the Shenzhen Stock Exchange since May 2008, also surged after the shooting because of its Chinese name, as “ge er” is a homophone for “cutting ears”.

“Every country has ‘meme stocks’, but the high presence of irrational retail investors in China only fuels such speculative sentiment. In such cases, stock prices are not justified by financial fundamentals, but by popular attention,” said Xu Tianchen, senior China economist with The Economist Intelligence Unit.

“Also the role of speculative interests should not be neglected. They often manipulate illiquid, small-cap stocks, generate a sensation, and then profit-take as retail investors flock in.”

Just a couple of weeks ago, while touring through Hefei, Anhui province, President Xi Jinping quoted a famous saying: “How many times in life can one seize the moment to fight?” Afterward, the Shenzhen-listed Edadoc Technology, whose name means “fight for technology” in Chinese, suddenly surged.

And back in 2015, during the peer-to-peer (P2P) lending boom, a company renamed itself “Pi Tu Pi” purely for the brand association. And the shrewd move paid off, with its shares hitting the upper limit for multiple days in a row.

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China-South Korea ties: empty ambassador chair highlights complications in relationship

https://www.scmp.com/news/china/diplomacy/article/3284338/china-south-korea-ties-empty-ambassador-chair-highlights-complications-relationship?utm_source=rss_feed

China has been without an ambassador in South Korea for more than three months, the longest vacancy since the two countries established diplomatic ties.

Some diplomatic observers said the choice of a new ambassador might reflect the need to consider a growing number of geopolitical challenges, but others said the delay may not have any special significance and suggested Beijing may have other diplomatic priorities.

Beijing has made no announcement on its next ambassador since Xing Haiming left the position on July 10, having served in the role since January 2020. The embassy is currently run by Fang Kun, the chargé d’affaires.

Recently vacancies in China’s ambassadorial roles to the European Union and the United States have also been left unfilled for an extended period.

In May last year, former foreign vice-minister Xie Feng was appointed as ambassador to Washington, a role that had been vacant for almost five months, the longest period since US-China relations normalised in 1979.

Last month, China’s former ambassador to Israel Cai Run became the country’s new envoy to the European Union, filling a vacancy that had been open since March.

According to Chung Jae-hung, director of the Centre for Chinese Studies at the Sejong Institute in Seoul, complex geopolitical tensions might require China to consider more factors when selecting its candidate for South Korea than had previously been the case.

“With the strengthening of the US-South Korea-Japan relations and the growing hostility between North and South Korea, South Korea is likely to increase its pressure on China regarding these matters in the future. This raises the question of how China should approach relations between North and South Korea,” Chung said.

“Economically, China and South Korea’s priorities also diverge: South Korea seeks cooperation in China’s market, especially in services and finance, while China looks to chips and advanced industries where cooperation is limited.”

The position may remain vacant for a few more months, partly to allow Beijing to observe the state of US-South Korea relations after the US election, Chung said.

China and South Korea maintain robust trade ties but these have been tested in recent years by Seoul’s closer security and political relations with Washington under the Yoon Suk-yeol administration.

During his term, Chinese ambassador Xing stirred controversy when he cautioned Seoul last year against making the “wrong bet”.

The relationshship does not appear to be a top priority for either country, Chung said, noting that China was prioritising relations with developing countries, the Global South and alliances such as Brics, while South Korea was strengthening ties with Western nations.

For South Korea, relations with China appeared to be more about “management” rather than high expectations, he said.

Shi Yinhong, a professor of international relations at Renmin University in Beijing, pointed to several challenges in the China-South Korea relationship.

“For years, there have been North Korea’s greatly accelerated nuclear missile development and Beijing’s explicit appeasement on that.

“There also have been frequent massive US-ROK [Republic of Korea] military drills, deepening US-Japan-ROK security cooperation, the ROK’s increasing involvement with Quad and Nato, and most recently North Korea’s very dangerous actions in the peninsula and in Europe and Russia’s war there,” Shi said.

He said relations were at their lowest since the two sides formally established diplomatic ties in 1992, “except for about one year dominated by the THAAD dispute”, referring to a clash over the 2016 decision to deploy an American anti-ballistic missile system in South Korea.

Zhiqun Zhu, a professor of political science and international relations at Bucknell University in Pennsylvania, said it was not necessary to read too much into the ambassadorial vacancy.

“Given the importance of South Korea and the Korean peninsula in China’s diplomacy, Beijing is likely to appoint a heavyweight diplomat who will be welcomed by Seoul,” he said.

Zhu suggested there were several factors for the delay – such as Beijing’s prioritising the US and the situation in the Taiwan Strait and South China Sea –but a new ambassador was likely to be announced soon.

“North Korea’s latest rhetoric and actions against the South, as well as its participation in the Russia-Ukraine war, may have also added complexity to Beijing’s decision-making in appointing the new ambassador to Seoul,” he said.

Zhu Feng, executive dean of Nanjing University’s School of International Studies, also suggested this vacancy was not particularly significant because the embassy’s deputy head could temporarily assume the ambassador’s duties.

“Perhaps there are other matters affecting the selection, but for the bilateral relationship, the temporary vacancy of the ambassador is not a serious issue,” he said.

When asked when Beijing would appoint a new ambassador, foreign ministry spokeswoman Mao Ning said two weeks ago that she had no information to share.

“We stand ready to maintain communication with the ROK on the nomination of its new ambassador to promote the sound and steady growth of China-ROK relations,” Mao said.

Seoul this month announced the appointment of former presidential chief of staff Kim Dae-ki as its new ambassador to Beijing.

The current chief of staff Chung Jin-suk told Yonhap News Agency that Kim was chosen for his “abundant policy experience”, including handling trade disputes and the 2014 China-South Korea free-trade agreement.

Kim speaks advanced Chinese and previously served as a senior economic secretary and chief of policy under former president Lee Myung-bak, Yonhap said.

Chinachem wins Hong Kong land tender with US$131 million bid amid subdued sentiment

https://www.scmp.com/business/article/3284357/chinachem-wins-hong-kong-land-tender-us131-million-bid-amid-subdued-sentiment?utm_source=rss_feed

Hong Kong property developer Chinachem Group won a government land tender in the New Territories at a price within market expectations amid muted sentiment for land bidding, consultants said.

Keen Mighty Limited, a subsidiary of Chinachem Group Holdings, won the site in Sha Tin with a bid of HK$1.02 billion (US$131 million), the Lands Department said on Tuesday.

The 5,652-square-metre (60,838 sq ft) site at the junction of Sha Tin Wai Road and Siu Lek Yuen Road can support a total of 570 units. The bid works out to HK$3,357 per square foot, in line with market expectations that ranged from HK$3,100 to HK$4,000.

Sun Hung Kai Properties (SHKP), Wheelock Properties, CK Asset Holdings, Keen Point Limited and Sino Land also submitted bids for the site, known as STTL 625, by the deadline on Friday, the Lands Department said.

The per-square-foot price is 15 per cent less than SHKP paid in July for another parcel in the area, said Alvin Lam, director at Midland Surveyors. The government received 11 bids for that 2,425-square-metre site in Yuen Shun Circuit, the only residential plot offered during the April to June quarter. Chinachem was among the bidders.

The parcel of land, which can support around 280 flats, went for HK$619 million or HK$3,952 per square foot.

The price for the STTL 625 site is reasonable, Lam said. While the site is larger and is about a 10-minute walk from an MTR station, the investment cost is relatively large and noise may be an issue because it is next to a highway.

Consultants also said developers are being conservative in their bidding.

“I do not consider that market sentiment for development land has recovered,” said Alex Leung, senior director at CHFT Advisory and Appraisal. “The bid prices for the two Sha Tin lots remained conservative.”

Hong Kong’s lived-in home prices fell by about 1.7 per cent in September to their lowest level since August 2016, as the impact of interest-rate cuts has yet to filter through to the faltering property sector, according to the latest official data.

Home prices fell for a fifth straight month, taking the 12-month decline to 12.5 per cent, according to data from the Rating and Valuation Department on Tuesday. 7.5 per cent so far this year.

Since hitting an all-time high in September 2021, home prices have retreated by about 28 per cent.

“There has been a lot of positive news in the property market,” said James Cheung King-tat, Centaline Surveyors executive director. “If the property market turns around at the end of the year, it is believed that this will increase the interest and confidence of developers in investing in land.”

South Korean national arrested in China on suspicion of espionage

https://www.scmp.com/news/china/diplomacy/article/3284358/south-korean-national-arrested-china-suspicion-espionage?utm_source=rss_feed

A South Korean national has been arrested in China on a spying charge, the Chinese foreign ministry confirmed on Tuesday.

Foreign ministry spokesman Lin Jian said the South Korean citizen was arrested “in accordance with the law on suspicion of espionage” and that their lawful rights would be safeguarded, without giving further details.

“The authorities have notified the South Korean embassy in China of the arrest and provided the necessary facilities for the officials to carry out their consular duties,” he said.

It is the first such case involving a South Korean national since China’s revised anti-espionage law was introduced in July last year.

South Korean news agency Yonhap had reported on Monday that a man in his 50s was detained late last year. The report, which cited diplomatic sources in Seoul, said the suspect had been living in Hefei, Anhui province – which has become a centre for science and tech – at the time.

The man was said to be a former employee of Samsung Electronics before he worked for Chinese chipmakers including ChangXin Memory Technologies, Yonhap and the Seoul-based Chosun Daily reported.

According to those reports the man is accused of leaking semiconductor-related information to South Korea.

A family member of the suspect told South Korean national broadcaster KBS on Tuesday that he was detained in December by Hefei’s national security department. The report included an official notice given to the family saying the person was detained on suspicion of espionage on December 18.

The family member said the suspect was detained in a hotel and questioned over a five-month period and that the Ministry of State Security had taken over the case in May. They said the suspect had diabetes and did not have access to his medication.

The South Korean embassy in Beijing did not respond to a request for comment.

It comes as China is ramping up counter-espionage efforts amid a growing rivalry with the West, including a tech war with the US that has seen restrictions on Chinese access to foreign chips and chipmaking equipment. That has prompted Beijing to pour resources into the domestic industry in a bid to become self-reliant in the advanced technology.

The arrest was made under the country’s counter-espionage law, which was overhauled last year to broaden its scope. The revised law bans the transfer of any documents, data and information “related to national security and interests” without permission.

On Monday, foreign ministry spokesman Lin accused the CIA of luring Chinese personnel to join the agency, saying Beijing would “resolutely combat the infiltration and sabotage activities of anti-Chinese forces outside the country, and vigorously safeguard its national sovereignty, security and development interests”.

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Angelababy among leading China stars to undergo significant physical transformations

https://www.scmp.com/news/people-culture/china-personalities/article/3284210/angelababy-among-leading-china-stars-undergo-significant-physical-transformations?utm_source=rss_feed

As the cosmetic surgery industry continues to thrive in China many celebrities have taken advantage of a so-called nip and tuck.

However, few openly admit to having work done because it can hurt their public image.

Often, their pre-fame photos surface, leading to speculation about whether they have gone under the knife.

The Post turns the spotlight on four Chinese celebrities who have undergone noticeable physical transformations during their careers.

Angelababy

Yang Ying, as Angelababy is also known, is a well-known actress and model born in Shanghai. Her father is from Hong Kong and is of mixed German and Chinese descent.

While she has starred in many popular TV dramas, such as Love O2O and A Murderous Affair in Horizon Tower, gaining significant fame, her popularity is still largely attributed to her striking beauty.

She also faced public accusations of undergoing cosmetic surgery due to the noticeable transformation in her appearance over the years.

In response, Angelababy underwent a series of medical tests in 2015 at the Plastic Surgery Hospital (Institute), CAMS, PUMC, including X-rays, to prove her beauty was natural.

Despite these efforts, suspicions remain about potential subtle procedures, such as hyaluronic acid injections, due to the stark contrast between her early and later images.

Xiao Zhan

The 2019 Drama The Untamed catapulted Chinese actor and singer Xiao Zhan to national fame.

Before his fame, Xiao was a university student who graduated from Chongqing Technology and Business University in southwest China and worked as a designer.

He made his TV debut on the variety show X-Fire.

Following his rise to prominence, pre-fame photos of Xiao surfaced, sparking discussions about changes in his jawline and facial structure, with some attributing them to cosmetic enhancements.

Amid the controversy, Xiao’s former classmates defended him on social media, sharing photos from his university days, showing that his features remain largely unchanged.

Also, photos of his parents surfaced, reinforcing claims that Xiao’s appearance is due to strong genes rather than surgery.

Jia Ling

The 42-year-old earned the title of “the world’s top-grossing female director” with her 2021 blockbuster, Hi, Mom, which took in more than 5.4 billion yuan (US$757 million) at the box office.

Jia Ling returned to the spotlight during the 2024 Chinese Spring Festival with her hit film YOLO – You Only Live Once – or Re La Gun Tang in Chinese, for which Jia underwent a significant transformation, losing more than 50kg.

In the film, she plays a reclusive woman who, driven by a passion for boxing, undergoes a dramatic transformation in both in appearance and self-assurance.

To promote the film, she shared her weight loss journey on social media.

“Four seasons in one year, I successfully lost 50kg and became a boxer. On the last night of shooting, I sat alone by the bed, moonlight shining on my back, scarfing down five packs of chocolate wafers, which is 30 pieces in all,” she wrote.

“Now, looking back, I felt especially cool, like a weary warrior celebrating with her victory!”

Zhang Yixing

Known as Lay from the film EXO, Zhang Yixing, 33, debuted in 2012 and quickly gained popularity.

He later starred in several films, released music and amassed a large fan base.

Often dubbed “Little Lamb” for his gentle persona, he was also teased about his chubby frame as a teenager, at which time he weighed more than 80kg.

He felt embarrassed during a class measurement when he realised his physical condition was far below that of his classmates, which motivated him to lose weight.

Within a month, Zhang lost 13kg. Through continued effort, he reached his ideal weight of 60kg and has maintained it since.

China sharpens edge in global trade with zero-tariff deal for developing world

https://www.scmp.com/economy/global-economy/article/3284329/china-sharpens-edge-global-trade-zero-tariff-deal-developing-world?utm_source=rss_feed

China will eliminate tariffs for goods from countries classified as the world’s least developed starting in December, a move expected to lower shipping costs from parts of Africa and Asia and give Beijing more sway in global trade.

The zero-tariff treatment for the group of mostly small, non-industrialised countries poses little threat to China’s manufacturing-intensive economy, analysts said, and gives Beijing an edge in emerging markets as the US and Europe attempt to stem the flow of Chinese goods into their own backyards.

The scheme will cover all countries the United Nations considers “least developed” that have diplomatic ties to China, the official Xinhua News Agency reported, citing the Customs Tariff Commission of the State Council.

Of the 43 countries that stand to benefit, 33 are in Africa. The others are Yemen in the Middle East, Kiribati and the Solomon Islands in the South Pacific and Afghanistan, Bangladesh, Cambodia, Laos, Myanmar, Nepal and East Timor – all on the Asian continent.

The tariff scheme, set to take effect on December 1, will apply to every import category, the commission said.

The removal of tariffs means these countries would pay less to ship crops, fruits, seafood or commodities to China – an enormous market – and exporters would in turn save on the transport of household goods, smartphones and electric vehicles to countries that reciprocate.

“China’s decision to extend zero tariffs is a welcome move at a time when protectionism is on the rise,” said Jayant Menon, a senior fellow at the ISEAS-Yusof Ishak Institute in Singapore.

Chinese officials may hope heightened trade relations with poorer, less developed nations will have ripple effects, said Liang Yan, a professor of economics at Willamette University in the United States. Beijing may be angling to earn their support in international bodies, she added, by pushing for open trade over protectionism.

“In the grand scheme of things, China does want to have more solidarity with the Global South, and there’s definitely this idea of power projection,” Liang said.

The Global South is a broad categorisation of the world’s relatively undeveloped countries – many of which were or are colonial subjects.

For products that fall under tariff quotas, the commission said, only shipments within the quota will be exempted from tariffs.

A quarter of merchandise exports from least developed countries went to China in 2021, more than any other country or bloc that year, according to the World Trade Organization.

Last year’s exports from the 43 UN-listed countries to China topped US$60 billion, Chinese customs data shows.

China has sought to cement trade relations with the developing world for the past several years. In 2022, for example, the commission erased tariffs on 98 per cent of taxable products from 16 least developed countries.

President Xi Jinping announced the zero-tariff scheme during a September 5 keynote at the Beijing Summit of the Forum on China-Africa Cooperation.

“This has made China the first major developing country and the first major economy to take such a step,” said foreign ministry spokesman Lin Jian on Friday.

Trump says ‘100%, yes’ he will get jailed Hong Kong ex-tycoon Jimmy Lai out of China

https://www.scmp.com/news/hong-kong/politics/article/3284346/trump-says-100-yes-he-will-get-jailed-hong-kong-ex-tycoon-jimmy-lai-out-china?utm_source=rss_feed

US Republican presidential candidate Donald Trump has pledged to get jailed former Hong Kong media tycoon Jimmy Lai Chee-ying out of China if elected.

Lai, founder of the now-defunct Apple Daily tabloid newspaper, is behind bars in the maximum-security Stanley Prison awaiting the resumption of his high-profile national security trial. He is expected to take the witness box next month to defend himself against foreign collusion and sedition charges.

In an interview with conservative podcast host Hugh Hewitt last Thursday, Trump was asked whether he would speak to Chinese President Xi Jinping to get Lai out of the country if he won the November 5 presidential election.

“One hundred per cent, yes,” Trump said. “I’ll get him out. He’ll be easy to get out. But we don’t have people that even talk about it.”

The former US president also said he had previously appealed to Xi after three American basketball players were detained for shoplifting in the mainland Chinese city of Hangzhou during a college tour in 2017.

The three UCLA players were subsequently released and returned to the United States after charges were dropped. At a press conference, they admitted stealing, apologised for their actions and thanked the US government for intervening on their behalf.

Lai has been remanded in custody since December 2020 on two charges of conspiring to collude with foreign forces and a third count of conspiracy to print and distribute seditious materials through Apple Daily.

Contrary to Trump’s claim, a bipartisan group of US lawmakers in September renewed calls for Lai’s immediate release.

In the same month, an international legal team representing Lai and his son Sebastien Lai appealed to UN Special Rapporteur on Torture Alice Edward over the former tycoon’s living conditions in prison, saying he had been subject to “prolonged detention in solitary confinement”.

The appeal drew a strong rebuke from Hong Kong authorities, who accused the international legal representatives and Sebastian Lai of undermining the city’s judicial system.

The ex-tycoon’s Hong Kong lawyers subsequently issued a statement, saying Lai was receiving appropriate medical attention for his health problems and had access to sunlight in his cell.

Trump is running against Democratic Vice-President Kamala Harris in the November 5 poll.

China smartphone market to close 2024 with first annual sales growth in 5 years: report

https://www.scmp.com/tech/tech-trends/article/3284324/china-smartphone-market-close-2024-first-annual-sales-growth-5-years-report?utm_source=rss_feed

China’s smartphone market is on track to record its first annual sales growth in five years, according to Counterpoint Research, which placed Apple out of the top-five domestic rankings in the third quarter.

Sales in the world’s largest smartphone market rose 2.3 per cent year on year in the September quarter, marking four consecutive quarters of growth that reinforce projections of a low single-digit increase in 2024, according to a Counterpoint report on Monday.

Chinese smartphone vendors Vivo, Huawei Technologies, Xiaomi, Honor and Oppo occupied the top-five domestic rankings, as Apple took the No 6 spot with a 13.5 per cent market share last quarter.

That finding runs counter to last week’s report by research firm IDC, which saw Apple back at the No 2 spot in third-quarter domestic smartphone shipment rankings behind Vivo and ahead of Huawei, Xiaomi and Honor. Apple in the second quarter, according to IDC data.

Improved domestic consumption is expected to heat up competition among major smartphone vendors this fourth quarter, boosted by Singles’ Day-related promotions and the introduction of artificial intelligence features in the latest 5G handset models.

“All major brands will update their flagship products with the latest chipsets, while introducing refreshed mid-end models for the mass market,” the Counterpoint report said. “As a result, competition in the fourth quarter is expected to be even more intense.”

Apple’s iPhone 16 series, which was released on September 20, already saw more than 70 per cent of domestic sales come from the Pro and Pro Max models as of October 8, “highlighting customer preference for more impressive display, gaming and imaging experiences”, the report said. It expected this trend to “result in more revenue growth for Apple”.

In the third quarter, Vivo continued to lead China smartphone sales with a 19.2 per cent market share. “Its diverse portfolio, with competitive models across nearly all price segments, helped Vivo retain its leadership position,” the Counterpoint report said.

US-sanctioned Huawei ranked in second place last quarter with a 16.4 per cent market share, as it recorded a 30 per cent year-on-year increase in sales, according to Counterpoint. The Shenzhen-based company’s Pura 70 and Mate 60 series drove most of Huawei’s sales last quarter, reflecting its strong presence in China’s premium handset segment.

Xiaomi secured third place with a 15.6 per cent share in the same period, according to Counterpoint. The company is expected to be the first Android smartphone vendor to integrate Qualcomm’s advanced Snapdragon 8 Elite processor on Tuesday evening, when the new Xiaomi 15 series will be launched.

The Beijing-based firm is expected to raise prices for its latest flagship series. The Xiaomi 15 Pro model, for example, will sell for more than 5,000 yuan (US$700), according to Wang Teng, Xiaomi’s vice-general manager for China. The previously released Xiaomi 14 Pro started at 4,999 yuan.

Fourth-ranked Honor had a 15.3 per cent market share last quarter, while No 5 Oppo had a 14.7 per cent share, according to Counterpoint.

[Sport] TikTok founder becomes China's richest man

https://www.bbc.com/news/articles/c8dmql101dno

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South China Sea: can the Philippines emulate China-India border deal to defuse tensions?

https://www.scmp.com/week-asia/politics/article/3284307/south-china-sea-can-philippines-emulate-china-india-border-deal-defuse-tensions?utm_source=rss_feed

Philippine Senator Imee Marcos has expressed hope that Manila can resolve the South China Sea dispute through diplomacy by emulating the recent China-India border agreement, but analysts argue her country’s limited leverage against Beijing’s military might makes a similar deal unlikely.

Senator Marcos, sister of President Ferdinand Marcos Jnr and head of the Senate panel on foreign relations, said the accord reached last week between China and India showed that dialogue works.

“If India and China can agree on peace after decades of lethal encounters, then the Philippines and China can certainly work together to de-escalate tensions in the West Philippine Sea,” she told the Inquirer newspaper on Friday.

The West Philippine Sea is Manila’s term for the parts of the South China Sea that are included in the country’s exclusive economic zone.

China and India announced an agreement on October 21 to resume patrols and ease military restrictions along their contested Himalayan border, marking a potential thaw after the deadly Galwan Valley clashes in 2020, where at least 20 Indian soldiers and an undisclosed number of Chinese troops died.

The two nuclear-armed neighbours have a long-standing territorial dispute along the 3,440km Line of Actual Control, with a history of stand-offs and a border war in 1962.

Marcos emphasised that the West Philippine Sea is evidently part of the Philippines’ territory and expressed optimism that the Philippines and China could pursue a “similar solution” to that of China and India.

Senator Marcos has taken a very different stance on the South China Sea conflict than her brother, promoting a “neutral” approach that favours dialogue over militarisation, while President Marcos Jnr has pursued closer US defence ties and strengthened the Philippines’ own military presence to counter Chinese actions in the disputed waters .

Lack of leverage

Geopolitical analysts suggest that the recent China-India border agreement is unlikely to serve as a straightforward model for resolving the South China Sea dispute, given the distinct strategic, geographic, and power dynamics at play.

Don McLain Gill, an international studies lecturer at De La Salle University in Manila, told This Week in Asia the agreement between China and India is “not an ideal agreement where everything is settled”.

Gill argued that within India, there is widespread scepticism about China’s commitment to the border agreement. “We don’t know whether that’s binding or not,” he said. “China pulled out their troops towards the traditional patrolling point of India. But it’s too early to say that the border agreement is successful. India is very much monitoring China.”

He added that India’s ability to push back against China militarily distinguishes it from the Philippines.

“India is the only member of the Quad – US, Japan, and Australia – that has effectively and physically pushed back China,” Gill said, citing incidents between 2021 and 2023 when India reportedly pushed Chinese troops back from the Tawang district of the northeastern Indian state of Arunachal Pradesh.

“This is the context,” Gill explained. “Verification is still needed, and the fact that China only responded to force shows that their interest in peace with India stems from the realisation that India is the only country that has managed to give them a ‘bloody nose’ in a physical confrontation. No other democracy in the world has been able to do that.”

“So, to say that last week’s agreement was achieved only through communication, is not the case. India had to show some muscle for China to recognise that there should be peace in the border,” he added.

Gill argued this means dialogue alone, without additional leverage, would not be sufficient for Manila to resolve its territorial disputes with Beijing.

“To think that China will engage freely without cause being imposed to have an agreement on the maritime border, that is not understanding China’s actual behaviour,” he said.

He suggested that the Philippines needs to continue working with its allies to apply pressure on China in accordance with international law. “We are merely defending what is rightfully ours,” Gill said. “We are not provoking the bear but the bear is provoking us. But we are still trying to maintain a peace and defence-oriented position in the West Philippine Sea, even though it’s ours.”

Gill noted that China may only return to the negotiating table if it feels pressure. “We have to do something on the physical end as well – not to provoke, but to ensure that China goes back in negotiations,” he said, citing the provisional arrangement at the Second Thomas Shoal as an example.

In July, the Philippines and China “reached an understanding” on a “provisional arrangement” for the resupply and rotation of the Philippine garrison aboard the BRP Sierra Madre – a navy ship deliberately grounded on the contested Second Thomas Shoal in 1999 to serve as a military outpost.

Beijing has been accused of employing aggressive tactics against Philippine ships in the South China Sea, such as firing water cannons and using high-intensity lasers, in a bid to assert its territorial claims in the disputed waters.

China’s territorial claims in the South China Sea overlap significantly with the Philippines’ exclusive economic zone. Beijing bases its claims on a “nine-dash line” that stretches hundreds of miles south of its mainland, covering vast maritime areas also claimed by several Southeast Asian nations, despite a 2016 international tribunal ruling that rejected China’s claims.

Muhammad Faizal Bin Abdul Rahman, a research fellow at the S. Rajaratnam School of International Studies in Singapore, said the tensions between China and India at the Himalayan border and those between China and the Philippines in the South China Sea are two different types of geostrategic conflicts.

Rahman highlighted that the power asymmetry favouring China is greater vis-a-vis the Philippines and noted that there is more incentive for Beijing and New Delhi to ease tensions, as business communities from both sides desire stable bilateral relations.

“It is possible that discreet diplomacy by their common strategic partner Russia may have a role,” Rahman explained. “China and India may want to minimise the issue’s impact on the rise of Brics, which to them may be a bigger priority in the backdrop of a fragmented multipolar world. These conditions don’t apply to the Philippines.”

“It is more difficult to resolve the issue at the South China Sea as there are far less incentives for China to make a deal with the Philippines. Furthermore, China may see the Himalayan border tensions as primarily a bilateral issue,” he added.

In contrast, Rahman said Beijing sees the South China Sea issue as primarily being fuelled by a US-aligned military build-up with the Philippines at the centre, making aggressive countermeasures necessary.

China eyes ‘birth-friendly society’ with population stimulus next on the agenda

https://www.scmp.com/economy/policy/article/3284318/china-eyes-birth-friendly-society-population-stimulus-next-agenda?utm_source=rss_feed

China has pledged to establish a childbirth subsidy system and offer further tax cuts for parents in an effort to build a “birth-friendly society” amid a looming demographic crisis.

Central authorities would also enhance medical, housing and leave benefits for families to ease the costs of raising children as falling fertility rates threaten the prospects of the world’s second-largest economy, according to a package of policies issued by the State Council on Monday.

While different levels of cash incentives were introduced at the local level to stimulate births in the past few years, the central government said it is drafting a detailed national-level plan, with some analysts forecasting an expenditure of up to 500 billion yuan (US$70 billion) per year.

Aiming to create an atmosphere where everyone “respects and supports childbirth” as the nation rapidly ages, the directive from China’s cabinet also vowed to expand income tax deductions for parents and include assisted reproductive services into the national insurance scheme.

Families with multiple children would also be given privileges in home purchasing, including higher public housing loan limits and larger homes when applying for affordable housing, it added.

As part of a broader stimulus package to revive the economy, Beijing could initiate a programme to encourage childbirth with a budget of around 250 billion yuan to 500 billion yuan per year, economists from Nomura said on Monday.

The directive is an attempt to integrate various support measures from local governments and establish a unified and nationwide system for supporting families, said Yuan Xin, a professor of demographics at the School of Economics at Nankai University.

Last week, the government of Shangyou county in the eastern Jiangxi province said that it would offer one-time payments of 7,000 yuan (US$982) for a second child and 13,000 yuan for a third.

But Yuan said such measures would be unable to yield immediate results.

China’s total fertility rate dropped to 1.09 in 2022, according to estimates from the China Population and Development Research Centre, with no official figure available.

The fertility rate refers to the number of children that would be born to each woman if she lived to the end of her child-bearing years. A population needs a rate of 2.1, known as the replacement level, to maintain its size.

“Factors such as a shrinking population base, weakened willingness to have children, delayed marriage and childbearing, an increase in single and childless individuals, and economic and social influences all contribute to a persistently low fertility rate, making any efforts to reverse this trend inherently challenging,” he said.

And a user on microblogging platform Weibo commented that the measures were like if “you’re buying a Ferrari, and the government is giving you a coupon worth 100 yuan”.

The impact of China’s demographic problems is first being felt by kindergartens, with the number of schools dropping by more than 5 per cent last year, according to an annual report by the Ministry of Education last week.

Last year, China’s population dropped for the second year in a row to 1.4 billion, representing a decline of over 2 million.

Only 9 million births were reported in China in 2023, the lowest figure since records began in 1949.

Boy in China gives own lunches to mentally impaired mum, eats leftovers, prompting donations

https://www.scmp.com/news/people-culture/social-welfare/article/3284135/boy-china-gives-own-lunches-mentally-impaired-mum-eats-leftovers-prompting-donations?utm_source=rss_feed

Millions in China were deeply touched by a 12-year-old boy who ate his classmates’ leftovers so he could save his lunch for his mother, who has a mental disability.

Li Shibo, a Primary Two student from a rural area in central China’s Henan province, was discovered by his teacher handing over his canteen lunch to his mother, who was waiting for him outside the school gate.

The teacher, known by the surname Wang, noted that he did not see Li when afternoon class began on October 14. After searching for him, he witnessed a poignant scene.

Li was watching his mother from the other side of the steel gate as she enjoyed his lunch, occasionally fixing her hair. Upon seeing his teacher approach, Li almost ran away, fearing he would be reprimanded for giving away the school’s free lunch. Instead, Wang praised him for his kindness.

Wang recorded the moment on video and shared it on Douyin, which received an overwhelmingly positive response.

In another video, Li is seen collecting leftover food from his classmates. He remarked that he only needed some water for lunch because “I am still young”.

A local disabled persons federation informed the Chinese media outlet Jimu News that Li also has a minor mental disability.

He lives with his mother, his elder sister – who also suffers from a mental disability – and their bedridden grandmother. Li’s father passed away in a car accident several years ago.

The family receives subsistence allowances from the government and is supported by Li’s uncle and aunt.

Local authorities stated that they provide the family with free meals.

The teacher mentioned that he often saw Li’s mother wandering around and stopping by at the school entrance.

Many believed that Li’s mother waited outside his school to keep him company, sensing the deep bond of love between the mother and son.

“He knows his mother is different from other parents, but he loves her regardless,” commented one online observer.

“This is the finest expression of filial piety,” added another.

Thousands visited Wang’s account, eager to donate money and essential goods to the boy’s family.

Parcels ordered online by kind-hearted individuals from across the nation nearly filled Li’s village home. Volunteers who visited had to request that donors hold back their contributions.

The teacher expressed that if Li’s mother comes to school again, he will personally ensure she receives a free meal.

The local civil affairs bureau announced they would visit the family and explore additional ways to assist them.

China to send youngest crew, including nuclear rocket scientist, to space station

https://www.scmp.com/news/china/science/article/3284283/china-send-youngest-crew-including-nuclear-rocket-scientist-space-station?utm_source=rss_feed

China is set to launch the Shenzhou-19 crewed spaceship in the early hours of Wednesday, sending three astronauts – including a nuclear rocket scientist – to its space station, according to the China Manned Space Agency.

Commander Cai Xuzhe, who took part in the Shenzhou-14 mission in 2022, will be joined by Wang Haoze and Song Lingdong – both first-time astronauts born in the 1990s – the agency’s spokesman Lin Xiqiang said on Tuesday.

Wang, 34, is the only female space flight engineer in China, according to the agency. She will become the third Chinese woman to take part in a crewed space flight mission, after Liu Yang who was in the Shenzhou-9 and 14 crews, and Wang Yaping, of Shenzhou-10 and 13.

Lin told the press conference Wang was a senior engineer at the Academy of Aerospace Propulsion Technology under the China Aerospace Science and Technology Corporation. There she designed nuclear-powered rocket engines, according to a paper seen by the South China Morning Post.

Song, also 34, was a former air force pilot before becoming an astronaut. They will be the youngest Chinese astronauts in space.

The Shenzhou-19 spaceship, sitting atop a Long March-2F carrier rocket, will launch from the Jiuquan Satellite Launch Centre in northwestern China at 4.27am on Wednesday. It is expected to return in late April or early May.

Ren Fengjie, an official with the launch centre’s meteorological department, told Chinese state news agency Xinhua on Tuesday the launch window was decided based on weather forecasts for the launch site and surrounding areas and real-time weather data analysis, and was scheduled to take advantage of low nighttime temperatures at the launch site.

Lin said the Shenzhou-19 trio would take over the command of the Tiangong space station from the Shenzhou-18 crew, who are in orbit and set to return to Earth on November 4.

“During the six-month stay, the team will conduct space science and application experiments, perform extravehicular activities and manage cargo operations,” Lin said. “They will conduct experiments to further enhance the efficiency of the space station’s operations.

“They will also install space debris protection devices and set up and recover external payloads and equipment.”

The crew will study the structural analysis of protein crystals grown under microgravity conditions, investigate non-equilibrium dynamics of soft matter and conduct experiments in the space life sciences, the physics of microgravity, space materials science, aerospace medicine and emerging aerospace technologies, according to Lin.

The results are expected to contribute to scientific areas such as frontier research on basic theories, new materials, the effects of space radiation and weightlessness on the body, sub-magnetic biological effects and molecular mechanisms.

Lin said new payload specialists selected from Hong Kong and Macau started training in August and “have fully integrated into the team” of the fourth batch of Chinese astronauts whose training would prepare them for both space station and lunar missions.

“In preparation for future crewed lunar missions, we will develop astronauts’ abilities in areas such as piloting spacecraft, operating lunar rovers, identifying celestial bodies, conducting geological surveys, floating in space and weight-bearing walking on the moon,” he said.

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US to ‘reap what it sows’ with ban on China tech investment: Hong Kong’s John Lee

https://www.scmp.com/news/hong-kong/politics/article/3284294/us-reap-what-it-sows-ban-china-tech-investment-hong-kongs-john-lee?utm_source=rss_feed

Hong Kong’s leader has warned that the United States will ultimately “reap what it sows” with its plan to clamp down on outbound investment in China’s semiconductor, quantum technology and artificial intelligence industries.

Chief Executive John Lee Ka-chiu also said on Tuesday that the move by Washington was not only harmful to others but also to its own residents and businesses, citing the US$271.5 billion the country had earned through trade with Hong Kong over the past decade.

“American politicians, in pursuit of political goals, are harming not only others but also their own country, citizens and businesses, and they will ultimately face the consequences,” Lee said before a meeting with the Executive Council, the city’s key decision-making body.

The US Treasury Department announced a day earlier that new rules would be introduced that prohibited engagement in certain transactions with mainland China, Hong Kong and Macau involving “a defined set of technologies and products” that posed national security risks.

The department also said it would require businesses and individuals to notify it if they had engaged in such transactions. The new rules will come into effect on January 2.

City leader Lee said the restrictions once again showed how American politicians undermined normal investment trade, free markets and economic order in pursuit of their own political interests.

The new US regulations would also harm global supply chains, while affecting the country’s own interests and those of its businesses, he added.

Lee noted the trade surplus between the US and Hong Kong amounted to US$271.5 billion over the past 10 years.

“The Hong Kong government will defend its own interests, protect the interests of Hong Kong enterprises, and work together with the nation to safeguard national interests,” he stressed.

Hong Kong has been caught in the crossfire between Beijing and Washington amid escalating geopolitical tensions in recent years.

The US House of Representatives earlier passed a bill that could lead to the closure of Hong Kong’s three trade offices in the country.

The bill passed by the House must also clear the full Senate, Congress’ upper chamber, before it can be sent to US President Joe Biden’s desk to be signed into law.

Some US representatives backing the bill have previously questioned whether Hong Kong remained sufficiently autonomous to warrant separate representation from Beijing, particularly after the enactment of the national security law in 2020.

The progress of the bill has also prompted central and Hong Kong authorities to mount a robust attack against Washington, with the former warning of strong countermeasures if the proposed legislation continued to advance through Congress.

Is Indonesia’s ‘big brother’ role in South China Sea dispute a model for the Philippines?

https://www.scmp.com/week-asia/politics/article/3284297/indonesias-big-brother-role-south-china-sea-dispute-model-philippines?utm_source=rss_feed

A forum involving business and diplomatic leaders in Indonesia and the Filipino community in Jakarta has highlighted how the Philippines could learn from its “big brother” in navigating the complexities of its maritime dispute with China.

Analysts at the forum titled “West Philippine Sea: Impact on Trade and Investment” organised on October 25 by the Philippine Business Club in Indonesia said Manila’s efforts to assert its sovereignty in the South China Sea are beginning to yield positive results.

They highlighted that fellow member nations of the Association of Southeast Asian Nations (Asean) are increasingly turning to legal avenues to challenge “China’s repressive military might and unwanted total ownership of the South China Sea”.

The speakers noted Indonesia’s bilateral ties with the Philippines, with one analyst calling for reciprocal efforts from Manila in economic investments, so both sides may leverage their Asean membership and work with their neighbours for regional stability based on a rules-based order.

“Indonesia is cognisant of the strength of Unclos as Jakarta and Manila fought for the inclusion of Archipelagic Principle or Archipelagic Doctrine in the Unclos provisions,” Chester Cabalza, president of the Manila-based think tank International Development and Security Cooperation, told This Week in Asia, referring to the UN Convention on the Law of the Sea.

He added that Vietnam reinforced its maritime claims by filing for its exclusive economic shelf before the UN, while Malaysia was “disgruntled with Beijing’s offensive charm despite Kuala Lumpur’s closeness with China to spare its maritime features”.

Shanti Shamdasani, founder of the think tank Asean International Advocacy, urged the Philippines during the forum to continue referring to its claimed exclusive economic zone under maritime law as the West Philippine Sea – an administrative and legal term that recognises the Spratlys and Scarborough Shoal as part of the country’s claims.

As the Philippines moves to strengthen multilateral cooperation with neighbouring countries and allies, supporting a “strong Indonesia” through strong bilateral relations could be key to achieving the elusive “Asean centrality” among partner countries. Analysts believe this approach could also help establish a long-overdue Code of Conduct (COC) to mitigate conflicts in disputed waters.

Indonesia regards stability in the South China Sea as of “critical importance,” Anindya Bakrie, chairman of the Indonesia Chamber of Commerce and Industry said at the forum, adding that the South China Sea was home to “some of the most vital maritime goods in the world”.

Meanwhile, Cabalza said both archipelagic countries should uphold maritime rules-based norms to foster widespread trade in the region.

He added that Jakarta’s efforts to assist Manila in modernising its military, along with substantial economic investments in sectors such as telecommunications, energy, agriculture, and food and beverage, “must be reciprocated.”

Additionally, he noted that the Philippines has been sending many skilled workers to Indonesia, including accountants, engineers, entrepreneurs, and educators.

Cabalza said that with 75 years of bilateral ties, the Philippines considers Indonesia as its “big brother and natural ally in the region” and Jakarta’s regional leadership within Asean and its “non-aligned diplomatic stature” can help mediate South China Sea disputes.

He also noted Indonesia’s potential to become the “biggest Islamic economy” and urged countries with overlapping claims to promote coexistence for regional stability, highlighting that claiming sole ownership in the South China Sea undermines the maritime rules-based order.

The forum took place on the heels of Chinese coastguard ships entering the North Natuna Sea, Indonesia’s term for its claimed exclusive economic zone, with Indonesian patrol vessels chasing out a Chinese ship for the third time in days on October 26.

The Chinese vessel asserted it was operating “within its jurisdiction” during the incident, which occurred shortly after Prabowo Subianto was inaugurated as Indonesia’s new leader.

Prabowo’s approach of “quiet diplomacy” combined with a willingness to use “hard power” to assert Indonesia’s claims around the Natuna Islands could serve as a “model example” for the Philippines in protecting its own claims over the West Philippine Sea, Indonesian media reported.

In addition to having larger armed forces, Cabalza said Jakarta had “flexed its own military might and willingly chartered a self-reliant defence posture and non-aligned foreign policy”.

“They succeeded in showing the region that Indonesia can secure its national sovereignty without bending to China’s expansionist ambition, while trading massively with them and enjoying America’s friendship,” he said, adding that the Philippines had long relied on its long-standing treaty alliance with Washington to cover its maritime insecurities.

Cabalza said Jakarta’s actions showed its Asean neighbours that they should “not be fearful of the Unclos” and pursue the completion of the COC as a “legally binding instrument to assert sovereignty rights against China’s expansive historical rights in the South China Sea”.

China takes down fake news about its military, closes social media accounts

https://www.scmp.com/news/china/politics/article/3284276/china-takes-down-fake-news-about-its-military-closes-social-media-accounts?utm_source=rss_feed

Chinese internet regulators are removing social media accounts that use fake information to hype the country’s military strength, including false reports of “cyberwarfare” in the South China Sea.

A sample post from June on Douyin, China’s version of TikTok, read: “Breaking news: China and the US engaged in 12 hours of cyber warfare, causing Luzon Island in the Philippines to lose all GPS, communication and phone signals!”

Another invented post in July featured a video delivering an in-depth explanation of how China had won in its rivalry with the United States, thanks to a technology breakthrough by telecoms giant Huawei which had upgraded China’s radars.

In its latest report released on Monday, the Cyberspace Administration of China said the posts were promptly identified as rumours and removed. The accounts responsible invented “military fantasy stories” to give themselves a sense of satisfaction and fulfilment, it said.

According to the report, various military and local government authorities have recently removed a batch of accounts for “speculating and fabricating false information, misleading the public and distorting the image of military personnel”.

Many of the accounts had been spreading military rumours and made-up history, the report said, naming two WeChat accounts that falsely said China had sunk four foreign ships.

Shanghai-based online news outlet The Paper appeared to be referring to the fabricated posts in July, when its representative asked defence ministry spokesman Zhang Xiaogang at a press conference about cyberwarfare chatter on social media.

Zhang told the assembled journalists that he had not heard of any such cyberwar occurring in the South China Sea.

According to the internet regulator’s report, some social media accounts were removed because they “engaged in historical nihilism”, a term that usually refers to present-day narratives that contradict the official version of history.

The report said these included two accounts on Zhihu – China’s version of the question-and-answer platform Quora – which said “Japanese soldiers killed by guerilla warfare on the Chinese battlefield were only a small portion of the entire army”.

Other accounts were removed for distorting the image and policies of the People’s Liberation Army. A Douyin account said a man joined the PLA despite his family’s objections and a few years later “all his mother got to see was his ash box”.

Some accounts called for 200,000 of the country’s troops to be discharged, saying it was too expensive to keep an army and such an action would ease China’s current financial troubles, the report said.

The cyberspace administration also said it was unacceptable for e-commerce traders to lure buyers for their online products in the name of the military.

Some accounts on Taobao and Xianyu – China’s biggest e-commerce platforms owned by Alibaba, which also owns the South China Morning Post – have been using PLA logos or claiming that products are “special supply in the military”, it said.

The accounts mentioned in the report could no longer be found on social media platforms, but some of the content continues to linger in the form of shared posts and screenshots.

“We will continue to crack down on illegal actions of social media accounts in military-related news, investigate and punish account owners who publish and hype false information, and expose typical cases,” the regulator said, and invited the public to report any examples they see.

Chinese authorities have little tolerance for the spreading of unconfirmed or negative information about the military.

In April 2018, the Standing Committee passed legislation banning the slander of “heroes and martyrs”, imposing administrative penalties on anyone who damaged memorials or insulted and defamed war heroes and other national figures.

In 2017, a woman was briefly detained for alleging that a sexual harassment scandal around a Beijing kindergarten involved serving members of the PLA. Her accusations were later denied by the military.

China calls for closer Asean cooperation to lower biosecurity and bioweapons risks

https://www.scmp.com/news/china/diplomacy/article/3284215/china-calls-closer-asean-cooperation-lower-biosecurity-and-bioweapons-risks?utm_source=rss_feed

China has urged collaboration with Southeast Asian countries to improve biosecurity and the governance of bioweapons.

Beijing made the call during the first regional workshop with 11 Southeast Asian countries last week in the science and technology hub of Shenzhen.

China’s foreign ministry spokesman Lin Jian said that the 12 nations agreed to improve communication in biosecurity governance and enhance the implementation of the United Nations-backed Biological Weapons Convention (BWC).

The convention, which China, Russia and the United States are signatories to, is a global safeguard aimed at prohibiting the development and use of such weapons.

“We will strengthen exchanges and mutual understanding, and promote the modernisation of the biosecurity governance system and governance capacity … and build political consensus, jointly resolve biosecurity risks and promote biotechnology for the benefit of mankind,” Lin said.

“We should also strengthen the Biological Weapons Convention and support international and regional organisations to provide more public products, and explore follow-up actions and deepen coordination … through regular workshops.”

In addition to the 10 members of the Association of Southeast Asian Nations (Asean), and China and East Timor, representatives from global organisations were also at the seminar, including the World Health Organization, the Food and Agriculture Organization of the United Nations, and the UN Institute for Disarmament Research.

“China and neighbouring countries share the same destiny with regard to biosecurity issues, including infectious diseases, animal and plant epidemics. Under such circumstances, we need to strengthen cooperation with our neighbours,” Li Fujian, deputy director of the Global Biosafety Governance Research Centre at China Foreign Affairs University, told state broadcaster CCTV.

Sun Xiaobo, the head of the arms control department at China’s foreign ministry, told state news agency Xinhua, that China and Asean nations shared “common positions”.

“The exchanges and cooperation will give new impetus to the building of a China-Asean community of destiny and will make new contributions to the cause of improving global biosafety governance and promoting peace and development,” he said.

Sun said that China is open to contribute more to global bioweapons control efforts, particularly to the BWC, as “the international community has high expectations for strengthening the convention and its implementation mechanisms”.

Beijing and Washington have been at odds over the issues of biosafety and biological weapons, especially during the Covid-19 pandemic, when both sides suggested that the origin of the coronavirus could be traced to each other’s research.

In 2021, China and Russia jointly called for the US to abide by the BWC.

Just weeks after Russia invaded Ukraine in early 2022, Moscow claimed that it had uncovered evidence of a US-funded bioweapons programme in labs there, an accusation that Washington denied. China’s foreign ministry then urged the US “to give a full account of its biological military activities at home and abroad and subject itself to multilateral verification”.

Last year, China’s Ministry of State Security – the country’s top spy agency – raised alarms about potential biological threats with a post on social media that said “some countries” were “armed” with deadly weapons that could target human genes.

In addition to biosecurity concerns, Asean nations face increasing challenges from tropical infectious diseases, large gaps in public healthcare, and growing threats from poverty and war, according to a 2020 report from the United Nations Interregional Crime and Justice Research Institute.

“Highly mobile populations and increased air travel to porous borders and the increased presence of terrorist groups have contributed to increasing the vulnerability of the region to natural, accidental and deliberate biological events”, the report said.

China driver buys used US$14,000 Tesla, finds it will not charge, tows with ox in protest

https://www.scmp.com/news/people-culture/trending-china/article/3284143/china-driver-buys-used-us14000-tesla-finds-it-will-not-charge-tows-ox-protest?utm_source=rss_feed

A car owner in China who was so shocked to find that a second-hand Tesla Model 3 – which he bought for 101,000 yuan (US$14,000) – would not charge, he staged a protest by towing it down the street pulled by an ox.

Many netizens were left stunned by the response of the unidentified man from Weifang in Shandong province, northern China, who recently bought the white Tesla Model 3 Performance through the well-known second-hand car platform, Guazi.

According to Tesla’s official website in China, the current price of the same model in China starts at 335,900 yuan.

However, after driving it, he discovered that the car displayed a warning indicating that it could not be charged, leading him to suspect a battery malfunction.

It is unclear how the car was delivered and whether the owner tested it before completing the purchase.

After failing to reach an agreement with Guazi and Tesla, the frustrated car owner resorted to attaching the Tesla to an ox and parading it through the streets in protest, in the hope of drawing public attention to his plight and seek justice.

A trending online video shows the ox slowly pulling the Tesla down the street, with its body spray-painted with the words “Deceived by Guazi” and “fraud”.

The move quickly drew attention from passersby who slowed down to see what was happening and even filmed the scene.

The man later parked the car in front of a Guazi second-hand car dealership.

A member of staff at customer service for Guazi told IFENG.com that all vehicles are inspected before being listed on the platform, noting that the customer had bought the car through Chesupai, Guazi’s C2B service designed for professional dealers.

“This service primarily caters to second-hand car dealers who purchase vehicles at lower prices to resell for profit.

“The Tesla was part of a dealer-focused promotion, thus the buyer was responsible for assessing the vehicle’s condition and bearing the associated risks,” the staff member said.

On October 23, Guazi also released an official statement, in which it said that the seller was not a typical consumer but a professional car dealer who had completed more than 30 transactions on the platform.

According to the professional inspection report, the car’s mileage was noted at over 280,000 kilometres, and it had a history of significant damage.

The vehicle was rated as a D-grade, signalling it should be bought with caution.

Another Guazi employee told K618.cn that although the Tesla’s battery life had significantly deteriorated, battery performance is not included in the platform’s pre-sale checks.

Nevertheless, the company has processed a return and issued a refund to the customer.

The incident prompted a wave of humorous comments from netizens.

One person wrote: “This poor old cow, has anyone thought about its feelings?”

“This is so bizarre. A car that can’t be charged is basically scrap, and you’re selling it for 101,000 yuan?” said another.

A third online observer asked: “If I have to assess everything myself and take on all the risks, what’s the point of your platform? Just to take my money?”

Brazil backs away from joining China’s belt and road but keeps funding door ajar

https://www.scmp.com/news/china/diplomacy/article/3284244/brazil-backs-away-joining-chinas-belt-and-road-keeps-funding-door-ajar?utm_source=rss_feed

Brazil has decided against joining China’s Belt and Road Initiative, instead seeking alternative ways to collaborate with Chinese investors, a top government adviser said on Monday.

Celso Amorim, special presidential adviser for international affairs, told Brazilian newspaper O Globo that Brazil wants to “take the relationship with China to a new level, without having to sign an accession contract”.

“We are not entering into a treaty,” Amorim said, explaining that Brazil does not want to take Chinese infrastructure and trade projects as “an insurance policy”.

According to Amorim, the aim is to use some of the belt and road framework to find “synergy” between Brazilian infrastructure projects and the investment funds associated with the initiative, without necessarily formally joining the group.

The Chinese “call it the belt [and road] … and they can give whatever names they want, but what matters is that there are projects that Brazil has defined as a priority and that may or may not be accepted [by Beijing]”, Amorim said.

The decision contradicts China’s plans to make Brazil’s joining of the initiative a centrepiece of President Xi Jinping’s state visit to Brasilia on November 20. But officials from Brazil’s economy and foreign affairs ministries recently voiced opposition to the idea.

As reported by the Post last month, Brazilian President Luiz Inácio Lula da Silva was advised by diplomats to delay any announcement about joining the Chinese initiative until after the US presidential election.

The prevailing opinion was that joining China’s flagship infrastructure project would not only fail to bring any tangible benefits for Brazil in the short term, but could also make relations with a potential Trump administration more difficult.

Last week, Amorim and the president’s chief of staff Rui Costa travelled to Beijing to discuss the initiative. According to sources, they returned “unconvinced and unimpressed” by China’s offers.

At the same time, US Trade Representative Katherine Tai – speaking at an event in São Paulo – urged Brazil to view the proposal through an “objective lens” and “risk management.”

The Chinese embassy in Brasilia called her remarks “irresponsible” and “disrespectful”.

China’s state-run Global Times responded with an editorial connecting Tai’s comments to the Monroe Doctrine, the US policy that historically opposed European colonialism in the Americas while asserting American influence in the region.

“Tai’s warning to Brazil reveals a power ideology that regards Brazil as a ‘geopolitical backyard’ of the US, showing a fundamental lack of respect for both the Brazilian government and its people,” the editorial said.

Will China cut personal income taxes as part of its stimulus drive?

https://www.scmp.com/economy/china-economy/article/3284162/will-china-cut-personal-income-taxes-part-its-stimulus-drive?utm_source=rss_feed

With former US president Donald Trump flagging the possibility of ending federal income tax during his campaign last week, there are also rising calls in China for personal income tax cuts as part of Beijing’s stimulus package.

China is racing against time to battle weak domestic demand and consumer confidence amid efforts to achieve its annual economic growth target of “around 5 per cent”.

During a round-table discussion earlier this month, Sheng Songcheng, former head of the People’s Bank of China’s statistics department, suggested further raising the personal income tax threshold and reducing the tax rate for low-income groups.

The personal income tax threshold should be raised from 5,000 yuan (US$702) a month to 8,000 yuan per month to unleash consumption potentials, according to his proposal.

The increase would only make the government lose out on 30 billion yuan (US$4.2 billion) in tax income a year – or less than 0.2 per cent of the total – representing a “trivial amount”, added Sheng, who is now a professor at the China Europe International Business School in Shanghai.

China last revised its tax-free threshold in 2018, when the limit was raised from 3,500 yuan a month.

More than 70 per cent of income earners make less than 100,000 yuan a year and are exempt from personal income tax, thanks to various tax deduction policies, the State Taxation Administration said earlier this month.

For those who are liable, over 60 per cent fall under the lowest 3 per cent tax bracket, which applies to an annual taxable income no more than 36,000 yuan.

China implements a progressive personal income tax system, with a top tier of 45 per cent higher than 37 per cent in the United States, 17 per cent in Hong Kong and 24 per cent in Singapore.

Trump made his suggestion during a campaign stop at a barber shop in New York ahead of next month’s presidential election.

As part of the efforts to lower tax burden, the Chinese government increased special pre-tax deductions for childcare, education and elder support last year.

Official figures showed around 67 million people benefited from the deductions after the change, with reductions exceeding 70 billion yuan, or an average tax cut of over 1,000 yuan per person per year.

Meanwhile, individuals earning over 1 million yuan annually make up about 1 per cent of personal income tax filers, but contributed over half of the total tax revenues in 2023.

Tax filers with declared incomes rank in the top 10 per cent, and account for more than 90 per cent of personal income tax payments.

“This suggests that the ‘adjustment’ effect of personal income tax is quite evident, playing a positive role in regulating income distribution and promoting social equity,” Li Ping, a senior researcher with the State Taxation Administration, said earlier this month.

Last year, personal income tax ranked as the fourth-largest source of government revenue, trailing revenue from the value-added tax, corporate income tax and consumption tax, official data showed.

Lawmakers, when reviewing the government’s budget plans in June, called for “more fiscal and tax policies to boost consumption, raising household incomes, and easing personal and corporate tax burdens”, according to minutes released by the National People’s Congress Standing Committee last week.

Wang Qichang, a committee member with the Private Economy Research Centre in Zhejiang province, said on Friday that tax cuts alone had limited impact on driving consumption.

“Most people pay little in personal income tax. In the past, there were times when consumption remained strong with higher taxes,” Wang said.

He pointed out that high-income earners who should pay more tax often avoid it through methods like setting up companies or using financial products, which are taxed at lower rates.

“Amid current fiscal challenges, simple tax cuts may push administrative agencies to impose additional fines and fees to cover revenue gaps,” he added.

“The key is to limit arbitrary use of administrative power. Reducing restrictions on private enterprises will boost people’s disposable incomes and drive consumption naturally.”

Mexico warns US ban on Chinese car tech could hurt its automotive industry

https://www.scmp.com/news/china/article/3284231/mexico-warns-us-ban-chinese-car-tech-could-hurt-its-automotive-industry?utm_source=rss_feed

The Mexican government on Monday raised concerns about the Biden administration’s proposal to prohibit key Chinese software and hardware in connected vehicles on American roads over national security concerns.

Mexico’s economy ministry said in a filing with the US Commerce Department the proposal could have a “substantial impact on Mexico’s automotive industry. Economically, it poses potential trade barriers, disruptions to supply chains, increased production costs, and a possible risk of reduced direct and indirect employment”.

Car and tech groups separately on Monday asked the administration for changes and for more time before the rule takes effect.

The proposal marked a significant escalation in US restrictions on Chinese vehicles, software and components and would effectively ban the import of Chinese-brand vehicles – even if they were assembled in Mexico.

In September, the Biden administration locked in steep tariff rises on Chinese imports, including a 100 per cent duty on electric vehicles and increases on EV batteries and key minerals.

Mexico said the proposal could violate North American free trade rules and “lead to increased production costs due to the shift in suppliers of auto parts and components within the automotive industry’s pre-planned supply chain”.

The Commerce Department did not immediately comment.

The proposal would make software prohibitions effective in the 2027 model year. The hardware ban would take effect in the 2030 model year or January 2029.

The Alliance for Automotive Innovation, representing General Motors, Toyota Motor, Volkswagen, Hyundai Motor and other major car makers asked for at least one additional year to meet the hardware requirement.

The Consumer Technology Association asked for both deadlines to be extended by two years as did Honda Motor in order “to conduct crucial testing, validations, and updating of necessary contracts”.

The Commerce Department hopes to finalise the proposal by January 20. The rules cover all on-road vehicles but exclude agricultural or mining vehicles not used on public roads, as well as drones and trains.

US to ban outbound investments in China’s semiconductors, AI over national security

https://www.scmp.com/news/china/politics/article/3284234/us-ban-outbound-investments-chinas-semiconductors-ai-over-national-security?utm_source=rss_feed

The US will ban outbound investments in China’s semiconductors, quantum technologies and artificial intelligence from January 2 if they are deemed to threaten American national security, a key move in the Biden administration’s efforts to address concerns about the mainland’s progress in advanced technologies.

The US Treasury released final rules on Monday to prohibit engagement in certain transactions with mainland China, Hong Kong and Macau involving “a defined set of technologies and products” that pose a national-security risk, according to the department, requiring them to notify Treasury of such transactions.

In a statement, Treasury said the transactions would cover technologies in semiconductors and microelectronics, quantum-information technologies as well as AI, which it described as “fundamental to the development of the next generation of military, surveillance, intelligence and certain cybersecurity applications” such as next-generation fighter jets.

Senior officials in the Joe Biden administration said the rules would ensure that US investments were not “exploited” in developing advanced technologies that would fuel modernisation of China’s military.

The investment ban would target direct or indirect investments that have a “nexus” to China and activities involving sensitive technologies and products, the official added.

Transactions such as the acquisition of equity interest, certain debt financing and greenfield investments or investments that could result in corporate expansion and joint ventures would also be targeted.

“This would include, for example, the US investment firm taking an equity stake in advanced semiconductors in the PRC … [or] to develop a quantum-computing research facility.”

The announcement followed Biden’s executive order in August last year enabling Treasury to ban certain tech investments in China.

Following two rounds of consultations with stakeholders and partners, the rules were expected to take effect on January 2, the official added.

The news comes a week before US election day, November 5, when American voters choose a successor to Biden. US Vice-President Kamala Harris, a Democrat, and former US president Donald Trump, a Republican, are running among other candidates.

News of the investment ban follows the White House’s release last week of its first-ever national security council memo on AI.

It seeks to improve America’s edge in AI over rivals such as China, encompassing classified activities to help US agencies deal with foreign threats.

Aside from a chips ban, the Biden administration has introduced export controls on advanced chips that are critical to AI applications while weighing further actions to curb Chinese access to large language models that could help Beijing develop an AI system like ChatGPT.

The White House has further urged allies to impose semiconductor export controls and launched a minerals security network in an attempt to cut China off from the tech supply chain.

The senior official said allies had been consulted on the Treasury rules, as the US called on the European Commission and Britain to explore “the issue of outbound investment security in their own jurisdictions”.

Beijing has often condemned Washington’s “small yard, high fence” policy that has curbed its tech development as it has accelerated efforts to develop hi-tech manufacturing and innovation, as well as figuring out ways to get around US restrictions.

Will next US president be able to drive a wedge between Russia and China?

https://www.scmp.com/news/china/diplomacy/article/3284178/will-next-us-president-be-able-drive-wedge-between-russia-and-china?utm_source=rss_feed

The presidential race between and comes at a time of rising geopolitical tensions on multiple fronts. In the 12th report of an , Orange Wang looks at Russia’s impact on the race and US-China relations.

Russia is one of the most divisive topics in the 2024 United States election, with many observers questioning whether Washington would continue to support Ukraine if Donald Trump wins.

The Republican candidate has repeatedly claimed that Russia would not have invaded Ukraine if he had still been in the White House and has claimed he could settle the war in a single day if he wins this time.

The conflict is also a major barrier between China and the West with the US and European countries repeatedly criticising Beijing’s close relations with Russia.

The US has repeatedly expressed its concerns about China’s close relationship with Russia and has said its economic support “fuels Russia’s war machine” – a charge China has dismissed as smears.

China has denied that it is helping Moscow’s war effort and says it is just carrying out “normal trade” with its neighbour.

Regardless of whether Trump or his Democratic rival Kamala Harris wins, many observers believe there is little chance that it will have a significant impact on the relationship between Beijing and Moscow.

They also believe that it is unlikely Russia will be able to improve relations with the West even if Trump – who has regularly spoken favourably about Vladimir Putin and reportedly talked to him seven times since leaving office – wins.

If that proves to be the case, it may only deepen Moscow’s economic reliance on China following the imposition of sanctions over the invasion of Ukraine, although some analysts have said Beijing should be prepared in case ties between Russia and the West improve.

Zhang Xin, deputy director of the Centre for Russian Studies at East China Normal University in Shanghai was sceptical about how far the election result would influence the course of the war between Russia and Ukraine.

“I think it is very hard to imagine that if Trump were to take office, he would completely cut off all forms of aid to Ukraine in a firm manner,” said Zhang.

He also said: “No matter the outcome of the US election and regardless of whether Trump comes to power, I think the possibility of a sharp reversal in US-Russia relations at the expense of Europe … and then a scenario where the US teams up with Russia against China, is very small.”

Yun Sun, director of the China Programme and co-director of the East Asia Programme at the Stimson Centre in Washington, said even if Trump viewed Russia more favourably than his opponent “that was also true during the first Trump term, and we did not really see a US-Russia rapprochement during those four years”.

She said: “Even Trump is subject to domestic constraints. And the Democrats and the Congress will be particularly alert toward any Trump plan that could compromise the US national interest.”

Trump has frequently touted his “very good relationship” with Putin but also praised Ukrainian President Volodymyr Zelensky when they had their first in-person meeting for five years last month and vowed to negotiate a Ukraine-Russia deal “that’s good for both sides”.

Zelensky has also said that he had received “very direct information” from Trump about his backing for Ukraine.

Meanwhile, Harris told Zelensky that “my support for the people of Ukraine is unwavering” when meeting him at the White House a day before Trump, shortly after the administration announced its latest US$8 billion military aid package.

“Overall, there is still a very long way to go” before Russia can ease tensions with Western countries, according to Sun Qi, executive director of the Centre for Russia and Central Asia Studies at the Shanghai Academy of Social Sciences.

He argued it will be very difficult to change Washington’s “systemic” support for Ukraine in a short period of time.

“In the short term, the relationship between the US and Europe with Russia will depend on whether Putin remains in power,” he said.

“Against this backdrop, Russia will face the growing pressure of isolation and marginalisation by the West. In the foreseeable future, Putin will continue to rely on the ‘turning to the East’ and ‘looking to the [Global] South’ to break the diplomatic deadlock.”

Zhou Chao, a researcher with the Beijing-based think tank Anbound, also thought there was a “limited” possibility that the US would attempt to court Moscow, adding: “Russia may have to rely even more on China both economically and politically”.

He said the “Russian military’s overall poor performance on the battlefield” and incidents such as the Kremlin’s “panicked” response to last year’s revolt by the Wagner mercenary group and a recent failed strategic missile launch “have fully exposed Russia’s weakening state”.

Zhou said that the Ukraine war had changed the “logic” of Russia relations with the West and the country was no longer a “substantial threat” to the West’s broader interests.

He also said that although there is some fatigue in Western societies regarding aid to Ukraine, negative or even hostile attitudes toward Russia have not eased while Europe’s efforts to reduce dependency on its energy supplies have reduced the effectiveness of one of its key political levers.

In an interview with Sky News Arabia last month, Russian Foreign Minister Sergey Lavrov said: “We will never again pin our hopes on the coming of a ‘good guy’ to the White House or any other Western capital, who will help things straighten out in our country. Eventually we concluded that self-reliance was the best option.”

China and Russia declared a “no limits” partnership in early 2022 weeks before Putin launched a full-scale invasion of Ukraine.

Although Beijing has since emphasised that their relationship is not a formal alliance and its not “targeting any third party”, the alignment between the two neighbours has continued to deepen in the face of growing pressure from the US.

Putin and Chinese President Xi Jinping reaffirmed their close relationship during their most recent meeting – the third this year – at the Brics summit in the Russian city of Kazan.

Xi said the “profound and lasting friendship” between the two countries “will not change” and called for deeper “comprehensive strategic coordination”, while Putin said Russia fully intended to expand cooperation with China on “all multilateral platforms to ensure global security and promote a fairer world order”.

Annual two-way trade between the two countries reached a record US$240 billion in 2023, surpassing the countries’ goal of US$200 billion a year earlier than they had anticipated.

China’s imports and exports with Russia rose 1.9 per cent from a year earlier in the first eight months of 2024 though lower than the growth rate of China’s overall foreign trade, according to Chinese customs data.

The two powers have also stepped up their joint military exercises in recent months and expanded their cooperation in the Arctic.

Li Lifan, a Russia specialist at the Shanghai Academy of Social Sciences, said Russia and China’s mutual support was unlikely to change no matter who becomes the next US president.

He said Russia was likely to receive less economic support if relations with China worsen.

“From my personal perspective, the Russian side has no intention of making adjustments and neither does China,” Li, the director of the academy’s Shanghai Cooperation Organisation centre said.

Although there was a time when it was reasonable to think Russia might seek to counter Chinese power in East Asia, that possibility has not played out, according to a report published by the Washington-based think tank Centre for a New American Security last month.

“For the foreseeable future, Russia will likely be less materially able and less strategically willing to act as a counterbalance to China,” the report said.

But the paper, written by Jacob Stokes, Evan Wright and Nathaniel Schochet, recommended that US policymakers should keep an eye on potential disagreements between the two powers and identify opportunities to drive wedges between them when they arise.

The widely reported deployment of North Korean troops may be one such example. Shi Yihong, an international relations professor at Renmin University at Beijing, recently suggested that China may be “quite uneasy and potentially angry” about the move.

Zhou from Anbound said that China may need to pay attention to the possibility of Russia moving closer to the West in the future, especially if Trump is re-elected.

Zhou said it is important for China to prevent its important transport and energy infrastructure projects in Central Asia from being disrupted by Moscow, suggesting it was responsible for blocking a rail link with Kyrgyzstan and Uzbekistan.

Instead he said the country could “fully leverage Russia’s dependency on China to safeguard and advance its own strategic interests”.

Zhang from East China Normal University said it was risky to copy Russia’s messaging on the war in Ukraine and China should trust its own judgment on this and other major global issues.

He also said the country should be well prepared for possible changes in the dynamic and “should not be easily bound by either the US or Russia”.