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• Chinese smartphone giant Oppo, PolyU to launch joint AI research centre in Hong Kong
• Chinese scientists say they have made converged energy beam weapon a reality
• Rare earths in spotlight amid US-China tensions, Myanmar turmoil
• Singapore’s CDL buys US$1.3 billion Shanghai site as confidence rises in China property
• Malaysia complains to Vietnam over South China Sea reef expansion, sources say
• Researchers in China use computer modelling to predict Trump election victory
• China’s ‘bat lady’ Shi Zhengli opens path for new coronavirus research
• China urges US to hold the line on climate policy, regardless of election outcome
• Chinese AI unicorn Zhipu adds Beijing, Shenzhen government funds as shareholders
• Report finds China targeted AstraZeneca in fraud probe over cancer treatment
• China’s spy ministry vows foreign espionage crackdown after strategic metal smuggling case
• Are mainland China and Hong Kong really the weakest links in Asian real estate?
• Can Japan-China talks change course on North Korea’s alliance with Russia?
• 4 China KOLs ruin reputations by selling fake mooncakes, illegal stocks and committing assault
• China-Japan ties: talks between Wang Yi and Takeo Akiba herald crucial leaders summit
• Chinese autonomous driving firm DeepRoute.ai raises US$100 million as adoption accelerates
• [Sport] Watch Chinese space crew return to Earth
• Swiss university’s not-so-neutral policy to restrict applications from Chinese students
• As China’s top lawmakers gather, what’s in store for the economy?
• Mainland Chinese buyers rush into Hong Kong property amid low prices and rates, high rents
• China rags-to-riches narratives spotlight first woman billionaire and peasant turned tycoon

Chinese smartphone giant Oppo, PolyU to launch joint AI research centre in Hong Kong

https://www.scmp.com/tech/tech-trends/article/3285164/chinese-smartphone-giant-oppo-polyu-launch-joint-ai-research-centre-hong-kong?utm_source=rss_feed

Chinese smartphone giant Oppo and the Hong Kong Polytechnic University have renewed a collaborative framework agreement, which involve the launch of a joint innovation research centre for artificial intelligence (AI) imaging technology in the city.

Oppo last Friday pledged no less than 30 million yuan (US$4.2 million) in funding over the next five years to deepen collaborative efforts with PolyU on AI imaging technology, as well as for expanding the scale of co-training for PhD and postdoctoral researchers.

“The research centre’s primary goal is to [nurture] talent,” Zhang Lei, chair professor of computer vision and image analysis at PolyU’s department of computing, recently told the South China Morning Post.

The new centre – scaling up from a joint innovation lab set up two years ago – is expected to be up and running by January next year. It aims to recruit around 25 doctoral researchers and several postdoctoral candidates over a five-year period. Their focus will cover computer vision, an area Zhang has been involved in over the past two decades, and extend to the broader research in generative AI (GenAI) technology.

GenAI refers to algorithms, such as ChatGPT, that can be used to create new content, including audio, code, images, text, simulations and videos.

What sets apart the Oppo-funded joint AI centre from other local initiatives, according to Zhang, is its emphasis on nurturing talent versus regular corporate project-based research.

“I firmly believe that without the opportunity to nurture talent, anything you pursue serves only a short-term purpose,” he said.

The collaboration between PolyU and Oppo reflects how academia and industry could push technological innovation, while working to enhance consumer experiences.

Fostering the development of leading AI experts has also become a prominent focus for Oppo amid the heated competition between the US and China for AI supremacy.

While China has expanded its AI talent pool over the last few years to meet growing domestic demand, the US remains the top destination for top-tier AI researchers to work, according to Chicago-based MacroPolo’s latest AI Talent Tracker report, which compares global movement between 2022 and 2019. MacroPolo operates under the Paulson Institute, an independent think tank focused on US-China relations.

In Zhang’s view, cross-border talent mobility has become commonplace, and when skilled individuals move to new markets, including mainland China, they would bring valuable knowledge that contributes to local advances in AI.

Zhang believes that Hong Kong provides plenty of advantages in luring AI talent, thanks to the city’s international environment and position in the Greater Bay Area.

“This is why I think Hong Kong universities and even local start-ups should actively seek out cooperation in the bay area,” he said.

Chinese scientists say they have made converged energy beam weapon a reality

https://www.scmp.com/news/china/science/article/3284794/chinese-scientists-say-they-have-made-converged-energy-beam-weapon-reality?utm_source=rss_feed

A new type of high-power microwave weapon, which combines electromagnetic waves with ultra-precise timing technology to boost power output to attack a single target, has been developed by Chinese scientists.

The weapon system, which has completed experimental trials on its potential military use, consists of multiple microwave-transmitting vehicles deployed to different locations. They then emit microwaves that can merge into a powerful energy beam to attack one target.

This is similar to the Death Star seen in the Star Wars films. To build up the energy required to destroy a planet, the vast space station to converge eight laser rays into a single beam.

This idea has been considered difficult to bring to life, as electromagnetic waves from different transmitting platforms need to arrive at the same location at the same time and in the same form to achieve effective power combination.

According to the research team’s calculations, this requires each microwave vehicle to be deployed with a positional error reduced to mere millimetres, and the time synchronisation error between them cannot exceed 170 picoseconds, or trillionths of a second, which is more precise than the atomic clocks on GPS satellites.

Scientists and engineers have overcome these obstacles and built a system in western China consisting of seven transmitting vehicles. Experiments have confirmed that the device can effectively suppress the signals of American GPS and other satellites, “achieving multiple goals such as teaching and training, new technology verification, and military exercises”.

The researchers connected the timing devices on the transmitting platforms with optical fibres to achieve “ultra-high time precision synchronisation”.

The specific performance parameters of the weapon remain confidential because of the military sensitivity of the project.

However, according to openly available information, Chinese scientists set a world record last year for achieving a time synchronisation accuracy of 10 picoseconds over a distance of 1,800km (1,100 miles) with optical fibre.

China has also made breakthroughs in improving the performance of mobile timing devices in recent years. The atomic clock on China’s space station is currently the most precise timepiece in space.

And with its hydrogen clock and the world’s first inter-satellite Ka link technology, China’s BeiDou system can currently provide centimetre-level positioning accuracy, superior to GPS.

However, the accuracy of BeiDou services is still an order of magnitude lower than the requirements of the combined power microwave weapon. To address this issue, scientists installed laser ranging auxiliary positioning devices on each transmitting vehicle to obtain millimetre-level coordinates.

After analysing data from various platforms, a mobile command centre then issues attack commands to the vehicles. The microwave beams can achieve a power-combining effect of “1+1>2”, said the scientist involved in the project.

The technology was developed by the Xian Navigation Technology Research Institute under the China Electronics Technology Group Corporation. The group is a major supplier of electronic warfare weapons for the People’s Liberation Army.

Currently, most energy weapons used in the military operate independently. Due to limitations in maximum power output, these weapons “have not formed effective combat capabilities”, the project team wrote in a paper published in the Chinese academic journal Modern Navigation in October.

Distributed structure can, in theory, enable the power of the attack beam to grow indefinitely. According to some previous research estimates, when the power of a directed energy weapon reaches one gigawatt, it can cause serious damage to satellites in near-Earth orbit.

Rare earths in spotlight amid US-China tensions, Myanmar turmoil

https://www.scmp.com/economy/global-economy/article/3285152/rare-earths-spotlight-amid-us-china-tensions-myanmar-turmoil?utm_source=rss_feed

Rare earth prices are expected to consolidate recent gains as disruptions in Myanmar curb supplies, and as Beijing could ramp up export restrictions amid uncertainty surrounding trade tensions with the United States after its presidential election on Tuesday, according to analysts.

Following recent supply disruptions in Myanmar, Chinese state-owned rare earth giant China Northern Rare Earth (Group) High-Tech announced list price increases, prompting share price gains for the sector.

An armed rebel group has taken over a mining centre in Myanmar as part of a more than three-year-old civil war, Reuters reported on October 23. Chinese media outlets say mining operations in the Southeast Asian nation have effectively been suspended.

China imported 31,000 tonnes of rare earth oxide from Myanmar for domestic processing in the first nine months of this year, customs data showed.

Meanwhile, analysts expect that Beijing could use export controls if it gets further enmeshed in trade disputes with the US or EU, as China controls 90 per cent of the world’s rare earth processing capacity backed by 60 per cent of global production.

“As it’s an important, though relatively small, part of China’s trade with the West, this sector could be a retaliatory tool for China in the event we see aggressive tariff action ramp up, or a sweetener to achieve a deal down the line,” said Lynn Song, Greater China chief economist with ING.

Rare earth elements, with names such as europium and scandium, may be used to build a wide range of electronic devices, from commonplace smartphones to sophisticated defence equipment such as radar systems.

“Rare earths and related extraction and processing technologies have already previously been deployed as bargaining chips in trade disputes,” Song added.

China is the world’s top producer of rare earth elements, with 17 metal oxides and 44 million tonnes of deposits.

In August, the Ministry of Industry and Information Technology and the Ministry of Natural Resources together set an upper limit for the year’s second batch of rare earth mining output at 135,000 tonnes and smelting at 127,000 tonnes.

Authorities have banned the export of rare-earth-extraction technologies along with the technology to make rare earth magnets.

China has said it equates its rare earth sector with national security.

US presidential candidate Donald Trump has threatened to raise tariffs on goods from China by 60 per cent if he wins the US election this week. His rival, Kamala Harris, is generally expected to hold current levels of tariffs on China following a series of hikes since 2018.

Other countries, including Australia, Laos and Vietnam, are searching for their own rare earth resources, partly to avoid dependence on China.

“People are running around the world looking for rare earth elements,” said James Chin, a professor of Asian studies at the University of Tasmania in Australia.

Singapore’s CDL buys US$1.3 billion Shanghai site as confidence rises in China property

https://www.scmp.com/business/china-business/article/3285141/singapores-cdl-buys-us13-billion-shanghai-site-confidence-rises-china-property?utm_source=rss_feed

Singapore developer City Developments Limited (CDL) – controlled by billionaire Kwek Leng Beng and his family – won a tender with a bid of 8.94 billion yuan (US$1.3 billion) for a site in the heart of Shanghai along with a partner, as confidence in China’s property market rises among foreign investors.

The builder plans to develop the 27,994-square-metre site in Xintiandi, Huangpu district, into a mixed-use project with 92 low-density villas, 102 luxury high-rise residential flats, a boutique hotel and 5,000 square metres of retail space.

Construction on the site, which comprises two plots located within walking distance of a luxury residential project, Lakeville, is expected to start in the fourth quarter of 2025 and conclude by 2030.

“The acquisition of this rare development site in Shanghai’s famous Xintiandi area represents the group’s confidence in China’s long-term growth prospects,” Sherman Kwek, group CEO of CDL, said in a statement on Friday.

“We are enhancing our presence in this dynamic and populous nation by targeting iconic placemaking opportunities in key tier-1 and tier-2 cities … We look forward to delivering an iconic landmark that will redefine the landscape.”

CDL holds a 51 per cent stake in the joint venture via its wholly owned unit Chenghong Shanghai, while the remaining 49 per cent is held by Lianfa Group, whose ultimate controller is state-owned developer Xiamen C&D Group.

The move marks a shift for the Singaporean developer, which sustained its biggest loss ever nearly four years ago after writing off a US$1.3 billion investment in Chongqing-based developer Sincere Property Group.

The new project is CDL’s first new investment in China since the first half of 2023, when it bought a site in the eastern Chinaese city of Suzhou that it plans to develop into a mixed-use office, hotel and residential property.

“CDL remains a long-term investor in China, confident in the fundamentals, resilience and growth of the economy,” the company said, adding that it has amassed more than 5,500 residential and commercial units for sale since it entered China in 2010.

The developer attributed its confidence to strong sales in central Shanghai despite the challenges in China’s property sector. It cited several luxury projects this year in Huangpu, Xuhui, and Pudong districts that were oversubscribed and fully or nearly sold out on the day sales began.

The nearby Lakeville Phase 6 residential project, developed by Shui On Land, sold all 108 flats it offered on its launch day in late September, fetching some 12 billion yuan.

Another luxury project in the same district, One Sino Park, sold all 158 units it offered on October 27 within three hours, generating 5.88 billion yuan.

CDL said its confidence also stems from recent easing policies offered by Chinese authorities, as well as two major rounds of policy easing introduced by the Shanghai government. These included relaxing purchase restrictions, lowering down payment requirements and reducing mortgage interest rates in May and September, respectively.

“These measures have led to improved sentiment and a stabilisation of resale prices,” the company added.

Sales by the nation’s top 100 developers rose 7.1 per cent in October from a year earlier to 435.5 billion yuan, according to data published by China Real Estate Information Corp on Thursday. Sales surged 73 per cent compared with September.

Malaysia complains to Vietnam over South China Sea reef expansion, sources say

https://www.scmp.com/news/asia/southeast-asia/article/3285150/malaysia-complains-vietnam-over-south-china-sea-reef-expansion-sources-say?utm_source=rss_feed

Malaysia has sent a complaint letter to Vietnam over its alleged expansion of a South China Sea reef that both countries claim as their own, two officials told Reuters, in a rare bilateral escalation not involving China.

The move brings to light another of the multiple disputes in the strategic waterway, most of which China claims sovereignty over, with Beijing involved in frequent altercations with the Philippines and sporadic rows with Vietnam.

The most contested features are around the Spratly archipelago, where China, Taiwan, Malaysia, Vietnam, Brunei and the Philippines all have various claims and degrees of occupation.

Malaysia’s letter was sent to Vietnam’s foreign ministry in early October but has so far received no reply, the two officials said, declining to be identified more precisely because the matter was sensitive.

The complaint was over Vietnam’s alleged artificial expansion of the Barque Canada Reef, an islet in the Spratlys where Vietnam has built numerous infrastructure, according to satellite images analysed by the Center for Strategic and International Studies, a Washington-based think tank, which were released last month.

In late October Radio Free Asia reported that Vietnam was also building an airstrip on the reef.

Vietnam’s foreign ministry did not reply to a request for comment. Malaysia’s foreign ministry did not comment.

The letter preceded those publications and only criticised the enlargement of the islet, not the building of infrastructure, one of the officials said.

The tiny Spratly Islands have seen significant construction in recent years as countries seek to bolster their territorial claims and prove they can sustain human habitation on dozens of islets and features.

China’s activities have attracted the most attention, with seven islands built on submerged reefs, some equipped with runways, docks, control towers and missile batteries.

Although complaints between Malaysia and Vietnam over territory are rare, Malaysia has often taken issue over what it says is encroachment by Vietnamese fishermen into its exclusive economic zone, leading to the arrest of some crew.

Researchers in China use computer modelling to predict Trump election victory

https://www.scmp.com/news/china/diplomacy/article/3285125/researchers-china-use-computer-modelling-predict-trump-election-victory?utm_source=rss_feed

Former US president Donald Trump is “more than 60 per cent” likely to beat Vice-President Kamala Harris and recapture the White House, according to computer modelling by academics from Fudan University in Shanghai.

The forecast was issued by the university’s Centre for Complex Decision Analysis (CCDA) on Sunday, just two days before Tuesday’s election showdown, amid a flurry of weekend polls that showed the race still neck-and-neck in the final sprint.

The researchers – led by Tang Shiping, from Fudan’s School of International Relations and Public Affairs – used a computational simulation to predict vote shares and electoral college votes in eight key states.

The chosen states – which all registered a gap between Republicans and Democrats of less than 5 per cent in the 2020 presidential election – included the battleground states of Arizona, Georgia, Michigan, Nevada, North Carolina, Pennsylvania and Wisconsin.

The eighth state selected for the modelling was Florida, where US presidential elections once were decided by the slimmest of margins. In recent years, the sunshine state has proved reliably Republican.

The technique, called agent-based modelling (ABM), mimics the actions and interactions of individual agents within a system to analyse complex behaviours and predict outcomes.

The method was widely applied during the Covid-19 pandemic, when it was used by researchers to simulate the spread of the virus as part of developing policies towards containing infections.

The CCDA’s forecast showed Trump winning Florida for the Republicans, along with Michigan, Ohio, Pennsylvania and Wisconsin. His Democratic opponent Harris would gain Georgia, Arizona and North Carolina, according to the modelling.

The researchers obtained their final forecasting results about a month ago based on data that was finalised on October 4, the study said.

The team also ran “1 million” rounds of the Monte Carlo simulation – used to predict the likelihood of a variety of outcomes with repeated random sampling – to forecast electoral college votes for the remaining 42 states and Washington, it said.

The researchers combined these results with the modelling on the eight battleground states to forecast a Trump win. However, the study did not include the projections from that aspect of the research.

According to the team, the intention is to wait until after the election before releasing the study’s technical details because of the “enormous attention” on this year’s US presidential race.

The final national poll before the election from NBC News on Sunday showed the candidates tied with each supported by 49 per cent of registered voters, while the survey from ABC News and Ipsos gave Harris a 49-46 per cent edge over her rival.

Meanwhile, the latest poll from The New York Times/Siena found the Democratic candidate narrowly leading in four of the seven swing states with Trump ahead in just one.

Observers broadly expect that the next US administration will continue to adopt a tough approach towards China, regardless of who wins the White House, citing a bipartisan consensus in Washington that Beijing is its largest strategic competitor.

There are also the continuing geopolitical tensions between the two powers over a spectrum of issues, ranging from the trade war and tech rivalry to the situations in the Taiwan Strait and South China Sea.

If Trump is elected and carries out his threat to impose tariffs of up to 60 per cent on Chinese goods, it would have a “devastating effect” on the Chinese economy, according to Wu Xinbo, dean of Fudan’s Institute of International Studies.

Speaking at a webinar held by the Columbia Global Centre last Tuesday, Wu said a second Trump administration would not only push for decoupling in trade, investment and technology, “they also want to cut off people-to-people exchanges”.

China’s foreign ministry has repeatedly said that the country has no comment on the US presidential election as it is America’s domestic affair. However, Beijing has called on Washington to work together to keep the bilateral relationship “steady, sound and sustainable”.

According to the CCDA study, the researchers ran simulations of the US election three times this year – in April, June and October, using data from different periods.

“The team deliberately refrained from publishing these predictions to avoid possible accusations of influencing the actual voting process,” a CCDA statement accompanying the study said.

“Again, we stress our forecasting exercise is purely academic and we have no intention of influencing the actual US election process in any way.”

The CCDA was established in 2013 and is China’s first research centre based on computational social science to provide technical support for national strategic decision-making.

According to its website, the centre made “accurate predictions” for the 2020 US presidential vote, the 2018 US Senate races in West Virginia and Missouri, as well as Taiwan’s leadership elections in 2016, 2020 and 2024 and its local elections in 2018.

Beijing sees Taiwan as part of China to be reunited by force if necessary. Most countries, including the US, do not recognise Taiwan as an independent state, but Washington is opposed to any attempt to take the self-governed island by force and is committed to supplying it with weapons.

China’s ‘bat lady’ Shi Zhengli opens path for new coronavirus research

https://www.scmp.com/news/china/science/article/3285140/chinas-bat-lady-shi-zhengli-opens-path-new-coronavirus-research?utm_source=rss_feed

A leading virologist known as China’s “bat woman” has created the first customised coronavirus receptor, a development that could help in the development of new drugs.

Shi Zhengli, who is best known for her work with the Wuhan Institute for Virology, conducted the groundbreaking research along with other scientists from China, the United States and Switzerland.

While researchers have previously been able to create strains of the coronavirus to study its potential evolution and spread, they have not successfully created functional virus receptors, the molecules on the host cells to which the virus binds.

In a paper published in the peer-reviewed journal Nature last month, corresponding author Shi and an international research team introduced the concept of customised virus receptors, a modular chimeric protein they compared to “Lego blocks”.

“The modular design relies on building artificial receptor scaffolds comprising various modules and generating specific virus-binding domains,” the team from the Wuhan Institute of Virology, Wuhan University, University of Washington and Swiss biotechnology company Humabs BioMed wrote.

“Our findings provide a foundation for the design of viral infection models for difficult-to-culture coronaviruses and other viruses, and will facilitate further advances in basic research on various infectious diseases and accelerate the rapid development of countermeasures for the benefit of public health worldwide.”

The study was supported by funding from both the National Natural Science Foundation of China, and the US National Institute of Health and National Institute of Allergy and Infectious Diseases, according to the paper.

During the Covid-19 pandemic, Shi’s research at the Wuhan Institute of Virology came under scrutiny because of her work with coronaviruses that originate from bats, which prompted the theory that the outbreak was the result of a lab leak.

The origin of the virus remains unknown, but several studies suggest the virus originated in bats and jumped to humans through an intermediate host. Another theory focuses on a wet market in Wuhan where a variety of wild animals were on sale.

Shi has denied that the institute was to blame for the outbreak, and called on former president Donald Trump to apologise for blaming it for the outbreak. She also criticised the National Institute of Health’s decision to suspend funding for the lab’s joint research with US scientists.

In the latest paper, Shi is listed as an affiliate of the Guangzhou Laboratory, which was established in 2021 to research respiratory diseases, as well as the Wuhan facility.

According to research database ORCID, she began her new role in May.

Scientists – including Shi – have warned that there is a high likelihood of another outbreak or pandemic caused by coronaviruses, which were also responsible for severe acute respiratory syndrome and Middle East respiratory syndrome.

This latest research could be used to assess antibodies against viruses whose receptors are still unidentified “thereby supporting pandemic preparedness,” the team said.

Coronaviruses fuse with cells in the host body to deliver genetic material and pass on infections, mainly targeting cells in the respiratory system, a process that is mediated by receptor molecules.

Understanding these receptors is important for studying the transmission and spread of viruses, but identifying natural receptors can be a difficult and time-consuming process that can take decades, according to Wuhan University.

To overcome this challenge and push forward research on viruses without known natural receptors, the team developed a method to create artificial receptors to help establish infection models.

The team first studied the ACE2 receptor – one of the widely acknowledged coronavirus entry receptors – to build their customised version.

After constructing the virus-binding domains and artificial receptor scaffolds, the components were grafted together to make a chimeric protein with customised functionality.

“Theoretically, receptors can be designed for most naturally existing viruses … although requirements and challenges for achieving optimal receptor function may vary among viruses,” the researchers wrote.

The team was able to create functional customised virus receptors for 12 representative coronaviruses, and were able to successfully isolate and cultivate coronaviruses such as HKU5, which was found in Japanese house bats in Hong Kong.

China urges US to hold the line on climate policy, regardless of election outcome

https://www.scmp.com/news/china/diplomacy/article/3285138/china-urges-us-hold-line-climate-policy-regardless-election-outcome?utm_source=rss_feed

A senior Chinese official has called on the United States to maintain stable climate change policies after Tuesday’s presidential election.

Xia Yingxian, director of the climate change department of China’s Ministry of Ecology and Environment, told a press conference on Friday that he hoped the US would continue to “work with other countries to implement the provisions of the Paris Agreement”.

China will send a delegation of more than 90 people to the United Nations Climate Change Conference, more commonly referred to as Cop29, in Baku, Azerbaijan, this month and will continue to “deepen South-South cooperation on climate change”, according to Xia.

He added that Beijing expected Washington to “maintain the stability and consistency of its climate policy” after the election.

Li Shuo, director of the China Climate Hub at the Asia Society Policy Institute, said if Donald Trump won the election, “his administration will reverse US climate policies and shelve bilateral climate talks with China”.

The former president, who once called climate change a hoax, withdrew the US from the 2015 Paris Agreement in 2017 and suspended climate negotiations with China. President Joe Biden announced US re-entry into the agreements in 2021.

“A second Trump administration will be an unprecedented test for global climate commitments,” Li said.

But victory for Kamala Harris “would come with a continued US commitment to the global agenda and likely a continuation of US-China cooperation on climate change”, according to Belinda Schaepe, a China policy analyst at the Centre for Research on Energy and Clean Air.

Despite tensions between the US and China over a range of issues – including trade, technology, human rights and geopolitics – climate issues have always been seen as an important factor in easing bilateral relations.

Chinese President Xi Jinping has pledged that the world’s second-largest economy will reach peak carbon emissions by 2030, followed by a gradual decline and carbon neutrality by 2060.

In September, climate envoys from both countries pledged to strengthen dialogue to jointly promote the success of Cop29 and narrow differences on key issues – such as climate finance and non-carbon emissions – following talks in Beijing.

Azerbaijan’s Yalchin Rafiyev, chief negotiator for the climate summit’s host country, said the narrowing gap between Beijing and Washington on climate finance would bring “positive signals” for Cop29.

Last year’s Cop28 summit in Dubai, United Arab Emirates, reached a landmark agreement to phase out fossil fuels. But Cop29 has the task of pricing in the costs that developing countries face to cope with the growing effects of climate change and the transition to a greener economy.

On Friday, Xia said China “has actively and constructively participated in global governance to address climate change” and “become an activist and doer in the climate field”.

Xia stressed that China would work with other developing countries to urge developed countries to meet their financial commitments and that China would “provide new and robust financial support”.

Schaepe said China had made “significant contributions” to global climate finance, but “the lack of transparency on projects and financial flows makes it hard to assess the actual impact”.

“Greater transparency in China’s climate finance projects could strengthen its image as a reliable partner for the Global South,” she said.

“At this Cop29, China can showcase its role as a climate leader and supporter of countries in the Global South by clarifying how it aims to support the global green transition, including financially.”

If the US again withdraws from the Paris Agreement after a Trump win, Schaepe said, “China wouldn’t have to do much to be seen as a climate leader and as the more responsible global power when it comes to tackling climate change”.

The agreement aims to cap the rise in global temperatures to less than 2 degrees Celsius above pre-industrial levels.

Li said that at Cop29 China has the potential to “become a unique force that unites the Global North and Global South, a responsible partner that global climate politics so critically needs now”.

“But without joint progress by the world’s two largest economies, global climate action won’t go far or fast enough” he said.

Chinese AI unicorn Zhipu adds Beijing, Shenzhen government funds as shareholders

https://www.scmp.com/tech/tech-trends/article/3285158/chinese-ai-unicorn-zhipu-adds-beijing-shenzhen-government-funds-shareholders?utm_source=rss_feed

Funds controlled by the municipal governments of Beijing and Shenzhen have acquired stakes in Zhipu AI, one of the country’s so-called artificial intelligence (AI) “tigers”, providing more resources for the start-up to compete with US peers like ChatGPT creator OpenAI.

On November 1, the Beijing Artificial Intelligence Industry Investment Fund – which previously invested an undisclosed amount in the start-up in March, according to local media reports – injected 465,090 yuan (US$65,288) in fresh capital to gain a 1.49 per cent stake in Zhipu AI, according to records on Chinese corporate database Qichacha.

Zhipu AI on the same day also received investments from funds controlled by the local governments of southern tech hub Shenzhen and central Hubei province, which boosted the firm’s registered capital to about 31.07 million yuan from 27.91 million yuan, Qichacha data showed.

Beijing-based Zhipu AI did not immediately respond to a request for comment on Monday.

The latest funding raised by Zhipu AI reflects how Chinese AI-related enterprises continue to attract new investment, despite Washington’s moves to prevent Beijing from pursuing advances in the technology.

Major investors in Zhipu AI include Alibaba Group Holding, Tencent Holdings, Meituan, GL Ventures and Legend Capital. Alibaba owns the South China Morning Post.

The Beijing government-controlled fund, which started in December last year with 10 billion yuan in registered capital, has so far made seven strategic investments, including in six AI start-ups and one advanced-manufacturing venture, according to Chinese company database platform ITjuzi.

In September, Zhipu AI raised an undisclosed amount in a funding round led by Beijing Zhongguancun Science City Innovation Development, a state-backed investment vehicle, which reportedly valued the start-up at around 20 billion yuan.

Zhipu AI is part of a group of new-generation tech unicorns – start-ups valued at more than US$1 billion – that have emerged as China’s best hope to push AI innovation and rival the success of OpenAI. The other “new AI tigers of China” are Moonshot AI, Baichuan AI and MiniMax.

Last month, Zhipu AI drew wide attention after unveiling AutoGLM, an AI agent app, that is able to understand relatively complex voice commands and complete instructed tasks for smartphone users.

Report finds China targeted AstraZeneca in fraud probe over cancer treatment

https://www.scmp.com/news/china/politics/article/3285128/report-finds-china-targeted-astrazeneca-fraud-probe-over-cancer-treatment?utm_source=rss_feed

Pharmaceutical giant AstraZeneca, whose China president is under investigation, was previously investigated for medical insurance fraud cases involving cancer medication sales, according to new Chinese media reports.

The news comes after the British-Swedish company announced on its official website last week that its China chief Leon Wang was cooperating “with an ongoing investigation”, and its operations in the country would continue under the leadership of AstraZeneca China’s general manager.

Media outlet Caixin reported on Monday that an official investigation, first made public in early 2022, targeted sales representatives for AstraZeneca’s lung cancer medication Tagrisso in the southern city of Shenzhen.

The National Healthcare Security Administration (NHSA), which oversees China’s general health insurance plan and medical aid programmes, announced on January 29, 2022 that some AstraZeneca employees were suspected of scamming medical insurance companies by changing the genetic test results of cancer patients, allowing them to buy medication using insurance.

In that statement, the NHSA said it had organised a task force to investigate and had arrested all suspects. However, the agency did not reveal the identity of the suspects or the medication involved.

Caixin reported that Zuo Yinquan, who was in charge of sales of cancer drugs – including Tagrisso – in the provinces of Guangdong, Hunan, Yunnan and Hainan as well as Guangxi Zhuang autonomous region, was arrested by Shenzhen police on January 8, 2022.

That was the beginning of a slew of insurance fraud cases involving the company, according to the report. In June 2022, several of the company’s employees in Fujian were taken by the police, and in September of that year, AstraZeneca’s Fujian general manager Kang Yuling was arrested.

In 2023, Zuo was sentenced in Shenzhen to 11 years and 6 months in prison for fraud. Earlier this year, Kang was sentenced in Fuzhou, Fujian province to 13 years and 6 months.

But the sentencing was not the end. Caixin reported that three managers from the company were taken by the police in July. There is no official information available on their case, but media reported they were summoned on suspicion of bringing an unapproved cancer drug into the country.

Caixin said that some of the employees confessed to tampering with patients’ medical reports because they were under immense pressure to sell medications and meet monthly goals, while others stated in confessions that patients had asked them to change test results so they could buy the medication.

The company did not respond to an interview request from the South China Morning Post to discuss the fraud cases or any new information on its China president.

No additional details have been given on the reasons for the investigation into Wang. When asked during a Chinese Foreign Ministry news conference on Thursday, spokesman Lin Jian suggested contacting relevant authorities.

“The Chinese government welcomes foreign companies to invest and do business in China and will protect their lawful rights and interests in accordance with the law,” he said.

AstraZeneca entered mainland China in 1993 and is now the largest foreign pharmaceutical company in the country. China is AstraZeneca’s third-largest market, according to the company’s website.

The company’s operations in China generated nearly US$5.9 billion in revenue last year, according to its annual report. That accounted for 13 per cent of the company’s total revenue.

China’s spy ministry vows foreign espionage crackdown after strategic metal smuggling case

https://www.scmp.com/news/china/politics/article/3285105/chinas-spy-ministry-vows-foreign-espionage-crackdown-after-strategic-metal-smuggling-case?utm_source=rss_feed

China’s top anti-espionage agency said a tip-off led investigators to crack a case of attempted smuggling of gallium – an essential component in military radar units that is subject to export controls – adding that it would continue to work to shut down theft of the country’s strategic minerals by “foreign espionage agencies”.

The Ministry of State Security (MSS) on Monday published a report on its official WeChat channel saying that it had received information that a foreign national surnamed Du had planned to transport the material out of China earlier this year.

According to the report, Du was stopped by the national security police who found a bottle of gallium in his carry-on luggage. The MSS said it then determined that Du had been carrying the bottle on behalf of an employee of a Chinese metal company, surnamed Tang, and Du had no idea that the material was a controlled substance.

Tang, a Chinese citizen, later confessed that another foreign national, surnamed Fan, told him he could earn a large sum of money if he purchased gallium in China and smuggled it out of the country.

Tang, aware that gallium was a restricted material in China, asked Du to transport the substance out of China and hand it over to Fan, according to the spy agency.

While Du was released with a warning, Tang and his company were “held accountable by law”, the MSS said, without providing further details.

In a move regarded as retaliation for US-backed sanctions on China’s semiconductor industry, the Chinese Ministry of Commerce imposed export controls on gallium and germanium in August 2023 to safeguard “national security and interests”, after it determined that the metals were strategic materials used in both military and civilian products.

The measures mean that authorities must give permission to export the strategic metals, with violators facing administrative punishment or criminal charges.

The MSS said given the current “complex external environment”, rare metals such as gallium and germanium are key resources for China’s development, particularly in the energy transformation, technological and industrial sectors.

The ministry said it would continue to “resolutely safeguard” mineral resource security to prevent “theft activities of foreign espionage intelligence agencies and their agents” targeted at China’s key strategic mineral resources.

Gallium is widely used in advanced microelectronics, ranging from semiconductors to LEDs, and has long been an essential material used in US advanced defence systems and the military supply chain. It is used mainly in high-energy radar systems, such as the US Navy’s AN/SPY-6, and the Marine Corps’ AN/TPS-80 Ground/Air Task-Oriented Radar (G/ATOR).

The AN/SPY-6 is a three-dimensional radar system to be deployed on the latest model of Arleigh Burke class of destroyers that use the Aegis combat system and are responsible for air and missile defence.

The AN/TPS-80 G/ATOR is also a 3D short and medium-range radar designed to detect objects such as uncrewed aerial systems, cruise missiles, air-breathing targets, rockets and artillery. These systems rely on gallium nitride technology to support their antennas and other essential components that are difficult to substitute.

Are mainland China and Hong Kong really the weakest links in Asian real estate?

https://www.scmp.com/opinion/hong-kong-opinion/article/3285061/are-mainland-china-and-hong-kong-really-weakest-links-asian-real-estate?utm_source=rss_feed

Things are looking up for commercial property investment markets in Asia. Following a sharp slowdown caused by an aggressive global monetary tightening campaign, transaction volumes have recovered significantly this year, rising 28 per cent in annualised terms in the first three quarters of 2024 among countries analysed by property services firm JLL.

Last quarter, JLL data shows that volumes reached US$38.8 billion, the highest level since interest rates began to rise steeply in early 2022.

Cross-border capital inflows, an important gauge of investment activity, have picked up, with both Asian investors – the dominant source of cross-border investment in the region – and global funds deploying more capital in a range of markets and sectors, including office and retail properties.

In fact, across most major markets, bullish narratives and more promising investment themes are evident. Some markets have gone from strength to strength, while others never skipped a beat.

In India, where overseas investors account for the bulk of investment activity, private equity investment in the property industry reached US$2.9 billion in the first half of this year, compared with more than US$3 billion for all of 2023. In a sign of the increasing maturity of India’s real estate industry, domestic investors accounted for more than 20 per cent of private equity deals in the past year, according to Knight Frank.

In South Korea, Seoul’s office market has defied the pandemic-induced deterioration in sentiment towards offices, attracting US$7.8 billion of investment in the first three quarters of this year, the highest amount among the world’s leading office markets, according to MSCI.

Singapore and Australia also experienced a marked increase in transaction volumes this year, partly due to a mix of increased investment activity by the countries’ real estate investment trusts and more attractive valuations due to a sharper repricing of assets.

“We’re seeing a broadening recovery in Asia almost across the board. Cross-border capital has tended to return to the mature markets,” said Greg Hyland, head of capital markets, Asia-Pacific, at CBRE.

However, the two markets where investment activity has been relatively muted are mainland China and Hong Kong. According to JLL, transaction volumes in China rose only 3 per cent year on year in the first three quarters of 2024. In Hong Kong, volumes fell 3 per cent.

Both markets have lacked the positive stories that other big markets in Asia enjoy. The cyclical and structural downturn in China’s economy, the huge supply overhang and high vacancy rates in the office sector, high borrowing costs and the “leakage” of domestic consumption in Hong Kong, and acute geopolitical risks have weighed heavily on sentiment.

However, the sweeping stimulus package unleashed by Beijing in September has improved China’s outlook and could boost its commercial real estate sector if the measures prove effective. JLL says the package may have trickle-down effects for the retail sector by encouraging consumption and supporting lending.

The stimulus has brought the nation’s real estate industry into sharper focus. While the crisis in the housing market has dominated headlines, less attention has been paid to commercial property, particularly the idiosyncrasies of the sector.

China is among the most actively traded markets in Asia. If development sites are included, China was the most widely traded market in Asia last quarter, data from MSCI shows.

Unlike other markets in the region that rely more on foreign investment, China’s commercial property market is dominated by domestic investors. Corporate occupiers are a key source of demand in China’s office sector, along with insurance firms. “Investment is driven by end users who are often able to acquire assets at steep discounts,” said Frank Marriott, head of regional investment advisory, Asia-Pacific, at Savills.

At a time when the gap in price expectations between buyers and sellers in many Asian markets has dampened investment, the share of distressed sales in China has risen sharply, providing a source of liquidity that is likely to gain importance in the coming years.

For investors with deep expertise in Chinese real estate and a longer-term horizon, prime retail and hotel assets in tier one cities present attractive opportunities. Retail transactions increased sharply this year, with Hong Kong-based Link Reit and Singapore’s sovereign wealth fund GIC buying stakes in trophy assets in Shanghai at deep discounts.

Moreover, China’s housing crisis is a boon for professionally managed rental housing, strengthening the tailwinds behind what many property advisers believe will be one of the leading institutionalised rental housing markets. “China will be one of the world’s largest multifamily markets in a decade’s time,” said Marriott.

For Hong Kong – whose fortunes hinge crucially on what happens in China – rental housing is the bright spot in the investment market. The rental market has been buoyed by the influx of mainland Chinese over the past two years. The surge in non-local students has turned the nascent private student accommodation market into a compelling investment opportunity as the city seeks to become a hub for higher education in Asia.

A surge in distressed sales which, according to Colliers, accounted for 37 per cent of commercial property transaction volumes in Hong Kong in the first three quarters of this year, is attracting bargain hunters who spot an opportunity to cheaply acquire assets in anticipation of recovery as interest rates fall and China’s economy stabilises.

China, and specifically Hong Kong, may lack the appeal of other leading real estate markets in Asia. But there are important sources of resilience and attractive long-term growth opportunities in both markets, ones that are often overlooked and underappreciated.

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Can Japan-China talks change course on North Korea’s alliance with Russia?

https://www.scmp.com/week-asia/politics/article/3285119/can-japan-china-talks-change-course-north-koreas-alliance-russia?utm_source=rss_feed

Japan’s top security envoy is in Beijing for talks with Chinese Foreign Minister Wang Yi to discuss a response to North Korea’s deployment of troops to Russia’s war in Ukraine, but experts say Tokyo will mostly likely find Beijing unwilling or unable to alter Pyongyang’s stance.

Takeo Akiba, head of Japan’s National Security Secretariat, flew to Beijing on Sunday, national broadcaster NHK said. His meeting with Wang aims to address the escalating security challenges posed by Pyongyang’s deepening military ties with Moscow.

“It’s clear that both Tokyo and Beijing are very concerned about these developments, but I do not think China can really apply too much pressure to North Korea,” said Ryo Hinata-Yamaguchi, an associate professor at Tokyo International University’s Institute for International Strategy.

“I think many people often overestimate what China can do with regard to North Korea, and while they are displeased by what is happening there, Beijing has not really had much influence in Pyongyang for a long time,” he told This Week in Asia.

While Tokyo and Beijing will share many concerns linked to North Korea and its deepening friendship and military ties with Russia, Hinata-Yamaguchi points out that there are still serious bilateral problems between China and Japan that are likely to hamper any efforts to unite on a common policy towards Pyongyang.

“China does not trust Japan enough to share information on North Korea or anything like that,” he said. “Perhaps the one positive thing for Tokyo that has come out of North Korea and Russia building this military alliance is that Japan and South Korea have got much closer from a security perspective.”

As well as discussing ways of putting pressure on Pyongyang, Akiba and Wang are also expected to start laying the groundwork for Prime Minister Shigeru Ishiba to meet Chinese President Xi Jinping on the sidelines of a coming summit in South America.

Ishiba is expected to attend the Asia-Pacific Economic Cooperation forum summit in Peru in mid-November before heading to a two-day meeting of the Group of 20 leaders in Brazil from November 18. Kyodo News said Peru was the most likely meeting place for the two leaders.

James Brown, a professor of international relations and an expert on Russian affairs at the Tokyo campus of Temple University, said North Korea would inevitably crop up during the two leaders’ discussions, but agreed that bilateral issues would dominate the agenda – in particular the breach of Japanese airspace off the Danjo Islands in Nagasaki prefecture by a Chinese military reconnaissance aircraft in August.

China on Saturday said the intrusion into Japanese airspace was caused by an “unexpected obstruction”, but failed to provide fuller details.

“Beijing is trying to play the issue down, to de-escalate and not to make it a bigger problem,” Brown said, adding that it bode well for the possibility of the two sides smoothing over some of the recent wrinkles in their relationship.

Yet Brown said he had little expectation that Beijing would be able to influence the actions of a regime in Pyongyang that had a large and powerful ally in Russia.

“Of course there is concern in China about the growing cooperation between Moscow and Pyongyang because it is clear that North Korea is not sending troops to Russia out of ideological commitment or any long-term ambitions – it is all about what they can get.”

Support in the diplomatic arena is one benefit, according to Brown, but of more importance to the North will be the transfer of technology for submarines, submarine-launched ballistic missiles and other weapon systems and know-how that have until now been beyond Pyongyang’s reach.

“China will also be concerned that the new alliance with Russia will have an emboldening effect on the North, which could lead to them doing something rash,” Brown said.

Japan may use Monday’s meeting to inquire about the pressures that China might be able to apply to the North to get it to reverse course on the provision of troops and materiel for the war in Ukraine.

According to Brown, however, Tokyo is likely to be disappointed by the reply as Beijing will not want to destabilise the regime in Pyongyang by withholding assistance or, potentially, forcing the North into an even closer relationship with Russia.

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4 China KOLs ruin reputations by selling fake mooncakes, illegal stocks and committing assault

https://www.scmp.com/news/people-culture/china-personalities/article/3284855/4-china-kols-ruin-reputations-selling-fake-mooncakes-illegal-stocks-and-committing-assault?utm_source=rss_feed

The past month has been disastrous for some of China’s leading influencers, including the top-earning KOL Crazy Xiaoyangge, who boasts 100 million followers.

They have inadvertently tarnished their reputations by selling fake products or attacking strangers during live-streams, inciting online outrage and jeopardising their lucrative careers.

The Post examines these cases to illustrate how, to paraphrase a saying, a lifetime of effort to build a good reputation can be lost in a moment. For these influencers, it appears their downfalls stem from over-confidence, ruthlessness, and arrogance.

Before becoming known as Crazy Xiaoyangge, Zhang Qingyang rose to fame with his “crazy” comic sales style. He was the first influencer to reach 100 million followers on Douyin in 2022, reportedly earning 3.21 billion yuan (US$450 million) last year.

In September, he sold mooncakes that he falsely claimed were from Hong Kong, when they were actually produced in southern China’s Guangdong province. As a result, his company, Three Sheep Group, faced a fine of 68.95 million yuan (US$9.6 million) from the government and was ordered to suspend operations.

Following this incident, Xiaoyangge lost nearly one million fans in just a week, according to Hangzhou-based data analytics company Huitun. Despite this setback, he still retains a fan base of over 120 million.

With over 9.5 million followers before his Douyin account was banned, Dalan transitioned from a fitness coach to a financial influencer. He provided investment advice and profited from courses priced as high as 298,000 yuan (US$42,000) aimed at cultivating successful entrepreneurs.

During the stock market frenzy that followed Beijing’s announcement of stimulus measures on September 24, Dalan posted several videos recommending stocks and predicting market trends. However, when the market did not perform as expected, many followers reported financial losses due to his recommendations.

He was banned on October 11 for illegally offering stock advice without a licence.

The 21-year-old Malatang transitioned from working at a hotpot restaurant to becoming a Douyin influencer with 1.8 million followers after being scouted by Shanghai-based Haishan Media.

On October 13, she live-streamed from Guangzhou Baiyun International Airport, secretly filming a couple who were making out. Additionally, she live-streamed the security checkpoint despite being warned against it. The airport later pointed out that filming security procedures is illegal.

Lawyer Zhao Liangshan from the Shanxi Hengda Law Firm noted that Malatang’s footage also infringed on the couple’s portrait and privacy rights.

The man filmed with his girlfriend, surnamed Li, stated that her actions had caused significant disruption in their lives and he reported the incident to the police. Despite Malatang’s attempts to apologise in a video, her account was subsequently deleted.

On October 15, viewers were appalled by a Douyin KOL who harassed and assaulted a volunteer wearing a face mask, demanding she remove it and even attempting to pull it off during a live-stream at Shenzhen Bao’an International Airport.

As the footage circulated, sparking public outrage, local police announced the arrest of the 42-year-old man, surnamed Wang, who had been intoxicated during the incident. His account, @Xiaohuxing, was later banned by Douyin, where he had amassed 60,000 followers while promoting himself as a financial influencer and frequently criticising aviation workers.

Many applauded the decision to ban him.

“The KOLs should understand that they cannot do whatever they please for the sake of traffic,” commented one online observer.

China-Japan ties: talks between Wang Yi and Takeo Akiba herald crucial leaders summit

https://www.scmp.com/news/china/diplomacy/article/3285076/china-japan-ties-talks-between-wang-yi-and-takeo-akiba-herald-crucial-leaders-summit?utm_source=rss_feed

China’s foreign minister Wang Yi will hold talks with Japan’s top national security official Takeo Akiba in Beijing on Monday, aiming to lay groundwork for the first summit between their leaders later this month, Japanese media reported while citing government sources.

Sources told Japanese news agency Kyodo on Sunday that plans were under way for the inaugural summit between Chinese President Xi Jinping and Japanese Prime Minister Shigeru Ishiba, who assumed office early last month.

The first high-level meeting between the leaders is expected to take place on the sidelines of an international event scheduled in South America. It could coincide with either the Asia-Pacific Economic Cooperation Forum summit in Peru on November 10-16, or the Group of 20 leaders’ meeting in Brazil on November 18 and 19.

The inaugural summit would represent a crucial opportunity to advance their strategic and mutually beneficial relations and improve communication on issues of common interest.

An earlier Kyodo report said the meeting would “mostly likely” take place in Peru, citing a source with knowledge of the matter.

Ishiba is expected to advocate for the swift resumption of Japanese seafood exports to China, following an agreement in September to progressively remove the ban, and will seek to advance ministerial-level economic dialogue between the two countries, according to the report.

The diplomatic groundwork for the high-level engagement this month follows a series of preparatory discussions, including a telephone conversation between Wang and Akiba on October 21.

At that time, Wang said China-Japan relations achieved “a steady start” as the Japanese government under Ishiba made efforts to send positive signals to improve bilateral relations.

The Japanese official visited Beijing in November last year to meet Wang to make final arrangements for a meeting between then prime minister Fumio Kishida and Xi in San Francisco.

Chinese Premier Li Qiang held talks with Ishiba last month as the latter made his diplomatic debut at the Asean summit in Laos. Li told Ishiba he hoped Japan and China could “meet each other halfway and keep the relationship on the right track”, while Ishiba said his country hoped to deepen practical cooperation with China.

China views with suspicion Japan’s plans for not only deepening its alliance with the United States and Western countries, but also forging defence ties with Southeast Asian countries, aimed at countering what it perceives as Beijing’s assertive manoeuvres in the Taiwan Strait and the contentious waters of the East and South China seas.

Last week, Japan and the European Union struck a deal to boost their security and defence partnership, which will promote concrete naval cooperation such as exercises and port calls, including with “mutually designated third countries”.

After the Liberal Democratic Party (LDP), led by Ishiba, and its long-standing junior coalition partner Komeito lost their parliamentary majority in the influential lower house, the coalition is attempting to establish a minority government that may face challenges in setting and executing its political agenda.

In the long term, a weakened Japanese government compounded by the domestic economic downturn is likely to grapple with navigating conflicting interests between its key ally, the US, and its largest trading partner China.

Chinese autonomous driving firm DeepRoute.ai raises US$100 million as adoption accelerates

https://www.scmp.com/tech/tech-trends/article/3285056/chinese-autonomous-driving-firm-deeprouteai-raises-us100-million-adoption-accelerates?utm_source=rss_feed

Chinese autonomous driving technology developer DeepRoute.ai has raised US$100 million from an carmaker, the company said on Monday, as it looks to bolster mass adoption of its systems on vehicles ahead of Tesla in China.

The Shenzhen-based start-up expects nearly 200,000 cars to be equipped with its advanced assisted driving system on Chinese roads by the end of 2025, CEO Maxwell Zhou told Reuters in an interview, up from about 20,000 now.

The system can navigate urban traffic similar to Tesla’s Full Self-Driving (FSD), which the US carmaker expects to launch in China in coming months.

DeepRoute.ai plans to launch more than 10 models with its carmaker clients in 2025, Zhou said. The first model equipped with its system launched in August and two more models, including one under the smart brand co-owned by Geely and Mercedes-Benz, will be delivered to consumers this year, he said.

The growing fleet will generate revenue for the company via a technology licensing fee per car and collect data that is key for its artificial intelligence technology to evolve faster to handle more complicated traffic situations, Zhou said.

DeepRoute.ai’s existing backers include e-commerce giant Alibaba and the sole investor in this fundraising round is a Chinese carmaker that the company declined to name. It also did not disclose the valuation of the company after the fundraising.

Carmakers have been competing to provide more advanced autonomous driving features as a selling point to lure Chinese consumers as a brutal price war extends among hundreds of models in the world’s largest auto market.

Interest in this area was further spurred this year after Tesla CEO Elon Musk said the US carmaker planned to introduce its FSD system in China, its second-largest market. Analysts said the move would force other competitors to grow faster to survive.

Zhou said he saw Tesla as a pioneer in bringing advanced learning technology to autonomous driving, but added it would need to adapt to the local market in China.

“China has more complicated traffic situations with pedestrians walking on motorways and millions of scooters rushing to deliver their goods,” he said.

Zhou said his team was also keeping an eye on opportunities overseas such as in Europe, Southeast Asia and the Middle East, anticipating demand for advanced autonomous driving technologies could emerge in 2027 and 2028.

DeepRoute.ai, founded in 2019, started developing its autonomous driving system without using expensive high-definition maps in 2020, while many of its peers and carmakers were investing heavily on mapping out the streets and highways.

This has given it a significant edge in costs that Zhou said could help carmakers to build a smart EV to be priced as low as 150,000 yuan (US$21,000) in China.

[Sport] Watch Chinese space crew return to Earth

https://www.bbc.com/news/videos/ckgv721kejyo[Sport] Watch Chinese space crew return to Earth

Swiss university’s not-so-neutral policy to restrict applications from Chinese students

https://www.scmp.com/news/china/science/article/3284843/swiss-universitys-not-so-neutral-policy-restrict-applications-chinese-students?utm_source=rss_feed

It is one of the world’s most prestigious universities, training the top engineers and scientists of the future.

But a recent move by Switzerland’s ETH Zurich (Federal Institute of Technology Zurich) to restrict admission of students from countries including China has been heavily criticised, with one Chinese scientist who spent years working in the country labelling the act “discriminatory”.

Last Thursday, the university announced its latest security screening policy, set to affect applications from doctoral and master’s students, guests and new staff.

For student applicants, there are four evaluation criteria. These include country of origin – both nationality and place of residence, previous education at an institution deemed a security risk, and any scholarships received from a sanctioned state, among others.

It is recommended to reject anyone with more than one “yes” on the checklist.

It is an unexpected move considering Switzerland’s principle of political neutrality has been deeply enshrined in its history for more than 500 years.

ETH Zurich said the rules are being implemented to “minimise the risk of misuse” of technology and knowledge developed at the institute that could be used for military purposes, something it calls “dual-use”.

“If certain foreign students, employees or guests could gain access to dual-use goods or key technologies, a security screening of their applications must therefore be carried out,” the university told the Post on October 31.

“There are neither hard exclusion criteria nor automatic mechanisms; each application is examined individually.”

But not all students are treated the same. If candidates are from one of 23 listed countries – including China, North Korea, Russia and Iran – the screening procedure is automatically triggered.

According to the policy, these countries are included because they are “subject to sanctions imposed by the United Nations Security Council, the US or the EU” – even though Switzerland is neither a member of the European Union nor an ally of the US.

“This is unprecedented and simply ridiculous,” robotics scientist Geng Tao, founder of the start-up Qibo Robot Company said.

Geng said that, as far as he knew, this was the first time a Swiss university had publicly announced such a wide-ranging scrutiny of Chinese students. He now fears other universities might follow suit.

“ETH itself does not impose sanctions,” the university said, stressing that the regulations are published “to ensure compliance with the rules in view of the rapidly changing geopolitical environment”.

“ETH Zurich and its employees must comply with Swiss export control regulations and sanctions in their work, but are also directly and indirectly affected by corresponding measures of third countries or international organisations,” it added.

There are 17 Chinese research institutions that are considered to pose a “security risk”.

These include the seven universities affiliated with China’s industry and information technology ministry – known as the Seven Sons of National Defence – such as the Beijing University of Aeronautics and Astronautics, and Harbin Engineering University. Other key research institutes are also listed, including the China Academy of Engineering Physics.

A total of 23 universities and research institutes in Iran, Russia and North Korea have also been named in the list.

ETH Zurich is currently ranked seventh in the QS World University Rankings, and focuses primarily on science, technology, engineering and mathematics.

Its most famous alumnus is Albert Einstein, who studied there from 1896 to 1900 when it was known as the Federal Polytechnic School in Zurich. He also later taught there as professor of theoretical physics between 1912 and 1914.

“ETH represents the highest level in European polytechnic higher education,” said Geng, who once also worked at a British university. “Much of the research doesn’t just end up being published in academic papers, but is really closely related to industrial development.”

But the university said that as most of the technologies it focuses on are either considered key technologies or can also be used for military purposes, “almost all subject areas at ETH” are subject to the security screening.

The list of subjects is long, ranging from additive manufacturing, applied chemistry and applied physics to nanotechnology and information technology. Fundamental research is generally not affected, the university added.

Qu Yunpeng, who spent four years as a material senior scientist at the École Polytechnique Fédérale de Lausanne, another top Swiss university, said that, as far as he was aware, this kind of rigour in screening international students was previously “unseen”.

“European universities like ETH Zurich used to be very open to international students and emphasise diversity, but now, influenced by external dynamics such as rising international tensions and technological sensitivity, candidates are being screened not only on the basis of their academic performance but also on other factors such as their origin,” he said.

Qu believes that such measures will have wide-ranging consequences.

He said European universities may face challenges attracting top international talent, which will then impact local innovation.

On a broader scale, he said, there could also be damage caused to international cooperation as trust and communication channels between researchers are disrupted, which could in turn slow down global scientific and technological progress.

While this was an autonomous decision by the university and does not reflect a national position, Geng said the measures would inevitably create an unfriendly image of Switzerland.

“China is on the rise, and this impression of hostility towards China could hurt Switzerland,” he said.

For example, he said, many wealthy Chinese people may decide not to put their money in Switzerland’s UBS Group – which is now the world’s largest private bank.

Commenting on the university’s policy page online, one person called it “one of the most shameful moments in the history of ETH Zurich”.

“This institution, once celebrated for its independence, autonomy, commitment to science and fairness, has now lost those very values,” the commenter wrote.

Last year, a German university decided to stop accepting researchers funded by a Chinese government agency “to reduce the risk of industrial espionage”.

And this year, restrictions on Chinese students have been spreading to more European universities. Eindhoven University of Technology in the Netherlands announced in July that it would no longer admit candidates who had received scholarships from the China Scholarship Council.

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As China’s top lawmakers gather, what’s in store for the economy?

https://www.scmp.com/economy/policy/article/3284808/chinas-top-lawmakers-gather-whats-store-economy?utm_source=rss_feed

A meeting of China’s top legislative body starting on Monday is expected to unveil a financial policy package focused on stabilising the economy through local government debt swaps and injections of capital into banks, analysts said, rather than replicating the 4 trillion yuan (US$564.7 billion) stimulus of 2008 as hoped for by some market players.

They also noted that the outcome of Tuesday’s US presidential election, which is likely to become known during the five-day meeting, will play a crucial role in shaping the direction of China’s economic stimulus efforts.

While the market has been speculating about a multi-year package ranging in size from 2 trillion yuan (US$280.9 billion) to over 10 trillion yuan, economists have been tempering those expectations.

“It’s pretty clear to us that policymakers just want to put a floor under the economy, rather than reflate it in any meaningful way,” said Larry Hu, chief China economist at Macquarie Capital, predicting that the stimulus will be designed to meet this year’s gross domestic product growth target while mitigating tail risks.

The National People’s Congress (NPC) Standing Committee is convening in Beijing to discuss a wide range of issues, with a potential financial stimulus package being the one that has captured the most attention.

The world’s second-largest economy is striving to reach its annual GDP growth target of “around 5 per cent” while battling a slew of economic challenges, including shrinking domestic demand, a prolonged property downturn and ballooning local government debts.

Hu said he expected Beijing to approve 6 trillion yuan for local government debt swaps over the next three years, alongside an injection of 1 trillion yuan into banks via special sovereign bonds.

He said some investors might regard such measures as “underwhelming”, but the package would be focused more on risk prevention and economic stabilisation than directly boosting demand.

“Expectations may have been too high in the first place, given the policy goal is to achieve this year’s growth target and reduce tail risks such as local government debt,” Hu added.

China fired off a policy bazooka on September 24, when the People’s Bank of China announced a larger-than-expected monetary-easing package.

It included a 0.2 percentage-point cut to the seven-day policy rate, a 0.5 percentage-point reduction in banks’ reserve requirement ratio, a slashing of the mortgage rate, and the introduction of two tools to help stabilise the stock market.

The announcement led to a rally in the domestic A-share market and prompted some to hope that a sweeping stimulus package – on par with the 4 trillion yuan stimulus of 2008 – might be forthcoming.

Ding Shuang, chief economist for Greater China at Standard Chartered, said the central government might be reluctant to raise its deficit this late in the year, and Beijing should be able to reach its economic growth target with previously announced support measures.

At a briefing last month, the Ministry of Finance pledged to allocate 400 billion yuan to boost the financial resources available to local governments and to allow the use of special government bonds to purchase unsold homes or idle land, which Ding said would provide a “notable boost” to the economy in the fourth quarter.

The official manufacturing purchasing managers’ index – a survey of sentiment among factory owners – beat expectations and rose to 50.1 in October, the National Bureau Statistics said on Thursday.

That ended five straight months of contraction, with analysts saying it was a sign that domestic demand might be recovering.

Ding also predicted more funding for local government debt swaps and bank recapitalisation in the wake of the NPC Standing Committee meeting, but stressed that such measures would “have an eye on the long-term” rather than any immediate effect.

Some of the funds might give the real economy a push, he added, as some of the cash is expected to be used to resolve unpaid debts.

“Especially when funds reach private construction firms, they start circulating within the economy, enabling these companies to pay wages and suppliers, which could be a push for the real economy,” he said.

While this week’s meeting may focus on defusing risks, Ding said the rolling out of additional incremental policies to boost consumption could be expected next year.

“This round of policy is a phased expansion in response to economic downturn and deflationary risks, in terms of the needs of the real economy,” Ding said, distinguishing it from the broad-based, flood-like stimulus that China’s top leadership has been eager to avoid.

Hu said the NPC Standing Committee meeting is unlikely to increase the central government’s fiscal deficit for this year, as local governments still have 2.3 trillion yuan in special bond issuance to play with.

“Further policy boosts will hinge on external demand,” he said, flagging the potential impact of the United States’ presidential election.

“If, for example, a new US-China trade conflict arose, leading to shrinking external demand, additional measures would become necessary, but we’re not at that point yet,” Hu said.

A new US president with a new China policy – such as the higher tariffs on Chinese goods flagged by Republican candidate Donald Trump – could pose a fresh test to China in terms of trade, technology and the overall economy.

Customs data showed the US was China’s top export market in September, with shipments up 2.16 per cent year, surpassing those to the European Union and the Association of Southeast Asian Nations.

“If [Democratic candidate Kamala] Harris is elected, US policy towards China is likely to maintain continuity, which would suggest a more moderate need for additional measures,” Ding said.

In the case of a Trump victory, however, Ding said Beijing could be expected to respond with bigger incremental measures, potentially reaching 1 to 2 per cent of China’s GDP, given the heightened external uncertainties.

Alicia Garcia-Herrero, chief economist for the Asia-Pacific region at French investment bank Natixis, said that while a stability-focused package might disappoint the market, it was needed to stave off deflation, which was mainly driven by excess supply in the real estate sector.

“The market needs to realise that these measures are something that China needs to do, because without this, its economy cannot grow,” she said.

“It’s not about growth only – it’s about avoiding a crisis or a financial stability problem.”

Mainland Chinese buyers rush into Hong Kong property amid low prices and rates, high rents

https://www.scmp.com/business/article/3285010/mainland-chinese-buyers-rush-hong-kong-property-amid-low-prices-and-rates-high-rents?utm_source=rss_feed

Hong Kong’s diverging housing rents and home prices are turning more renters into buyers, especially new arrivals under the city’s various talent schemes, offering a potential salve to the real estate slump.

At the same time, attractive rental returns, lower interest rates and the end of duties aimed at non-residents are drawing more buyers from mainland China into the Hong Kong market, property agents said.

Monica Li, a 36-year-old full-time mother from Beijing, has been busy searching for a two-bedroom flat in either Kai Tak or Wong Chuk Hang in the price range of HK$20 million (US$2.6 million). For families like hers – and all mainland investors – buying Hong Kong property is more palatable after stamp duties were waived in February, including a Buyer’s Stamp Duty that targeted non-permanent residents, Li added.

“Properties are cheap now as prices have gone down a lot from the peak,” Li said, “Interest rates are also going down, but rents are performing well. It’s a good time to invest in appropriate projects.”

Li, who originally came to Hong Kong for work, as did her husband, is not betting on a big profit from rising home prices. Rather, she has decided her children will study in Hong Kong. Many mainland families are shopping for property for the same reason, she said.

“The number of mainland buyers purchasing Hong Kong properties has significantly increased since March, and we saw recent first-hand projects like Sun Hung Kai Properties’ Cullinan Sky in Kai Tak and CK Asset’s Blue Coast in Wong Chuk Hang mainly targeting these buyers,” said Norry Lee, senior director of the project strategy and consultancy department at JLL Hong Kong.

The Hong Kong property market is a convenient choice for mainland homebuyers seeking overseas property investment, as the domestic property market is still on its way to recovery, Lee said.

“We are seeing more purchases for investment than for self-use purposes by mainland buyers, and the proportion is even higher than the number of local investors,” Lee said. People coming into Hong Kong via the Top Talent Pass Scheme tend to rent first, as they have not decided whether to stay for a long time, he added.

In the first three quarters of this year, mainland buyers accounted for 24 per cent of the 33,915 transactions in both the new and lived-in markets, according to Centaline Property. The figure, based on buyer names registered using the pinyin writing system, includes newcomers from mainland China as well as buyers from the mainland who have lived in Hong Kong for seven years or more.

The 8,133 transactions registered in pinyin accounted for a total value of HK$90.6 billion, or more than HK$11 million per transaction, Centaline said. More than half of these cases were in the secondary market.

Both the number of transactions and the value are highs since a previous peak in 2021. Compared with the same period last year, they represent a 69 per cent surge in transactions and a 43 per cent increase in value.

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.

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

Developers have been aggressively slashing prices of new residential projects since last year to boost sales amid lukewarm buying sentiment.

But home rents continued to increase. They rose by 0.1 per cent month on month and 5.8 per cent year on year in September, bringing the increase this year to about 5.4 per cent. The current rental-index reading of 196 is just four points shy of the 200.1 peak recorded in September 2019.

Centaline said many mainland buyers favour North Point in Hong Kong Island’s Eastern district. For example, such buyers have accounted for as much as 60 per cent of the sales in new luxury residential project Victoria Harbour, developed by Sun Hung Kai Properties.

Sentiment in the property market has seen a resurgence, and transactions have increased thanks in part to favourable support measures in Chief Executive John Lee Ka-chiu’s recent policy address. Specifically, Lee lowered mortgage financing terms to pre-2009 levels. Homebuyers can obtain as much as 70 per cent financing, regardless of the value or use of the property. The debt-servicing ratio was raised to 50 per cent from 40 per cent, standardising the level for both residential and non-residential properties.

This followed an interest-rate cut by the Hong Kong Monetary Authority and commercial banks in September and the removal of buying curbs in February.

The market has also seen more big spenders – those buying multiple units in one residential development. And 60 to 70 per cent of these are cash-rich mainland buyers, according to Sammy Po Siu-ming, CEO at Midland Realty’s residential division for Hong Kong and Macau.

A mainland investor bought 25 units for HK$130 million in Tseung Kwan O’s Manor Hill last month, according to a property agent familiar with the deal. The units are all one-bedroom flats of less than 300 sq ft, he said.

As developers have been offloading unsold units at discounted prices, the rental return for some small flats can reach 4 per cent, which is “quite attractive to some investors”, Po said.

“This is the first time we are seeing a larger proportion of big spenders splurging in Hong Kong’s property market who are mainlanders, due to the previous imposition of high taxes,” JLL’s Lee said. In the past, mainland buyers were mainly after high-end luxury homes for their own use.

The main driving forces of the sentiment improvement are the lower interest rates and Beijing’s stimulus blitz in late September, which created a wealth effect to underpin buying confidence, he said.

Any impact from the chief executive’s policy address will take until January next year to be reflected, he added.

Despite more investors entering the market, analysts do not see a significant rebound in prices, as the market is still facing oversupply that will take some time to digest.

“Although we are seeing more on the positive side, next year will still remain uncertain,” Lee said.

China rags-to-riches narratives spotlight first woman billionaire and peasant turned tycoon

https://www.scmp.com/news/people-culture/china-personalities/article/3284838/china-rags-riches-narratives-spotlight-first-woman-billionaire-and-peasant-turned-tycoon?utm_source=rss_feed

Despite their products being known nationwide and associated with the day-to-day lives of people in China, few are aware of the rags-to-riches stories of the business people behind them.

Their journeys exemplify how vision and determination can turn into success and symbolise entrepreneurial resilience in China.

The Post highlights four inspiring Chinese tycoons who have reached the top of their respective fields.

Zhang Yin

Known as the “Paper Queen”, Zhang began her career collecting scrap paper and rose to become China’s richest person in 2006, the first woman to earn the title.

Born in 1957 in Shaoguan, Guangdong province, southern China, Zhang had a challenging childhood, and took on significant responsibilities as the eldest of seven siblings.

After graduating from university, she gave up a finance job position in Shenzhen, southern China before moving to Hong Kong with only 30,000 yuan (US$4,200), venturing into the waste paper recycling business.

Zhang now serves as the chairman of Nine Dragons Paper (Holdings) Limited and was listed to have a net worth of 24.5 billion yuan (US$3.4 billion) by the Hurun Research Institute as of March 2024.

Xu Lianjie

Xu Lianjie, 71, who is known as the “Min Nan Business Godfather” and was once the richest person in Fujian province, southeeast China, began his career as a peasant worker and later made a fortune selling sanitary pads.

The business has grown his company, the Hengan International Group, into a concern with a market value of 60 billion yuan (US$8.4 billion), with annual revenues surpassing 20 billion yuan.

Born into a poor rural family in Jinjiang, in Fujian province in 1953, Xu’s childhood was marked by hunger and hardship.

Without completing primary school, Xu worked as a farmer and ran small businesses, selling everything from fruit to eggs and taro, he even pulled rickshaws.

His fortune changed when he identified a significant market opportunity in sanitary pads, noticing their hygienic advantages over the grass paper used in China at that time.

Xu then started the sanitary pad business with his partner, Shi Wenbo, a friend and businessman who had moved to Hong Kong and later returned to the mainland.

Xu’s net worth reached 10.5 billion yuan (US$1.5 billion) in 2024, as estimated by Hurun Research Institute.

Zhang Junjie

The 31-year-old entrepreneur from Yunnan province in southwestern China is the founder and CEO of CHAGEE, one of China’s most famous milk tea brands.

The brand soared to new popularity after Olympic tennis champion Zheng Qinwen became its ambassador, with sales exceeding 10.8 billion yuan (US$1.51 billion) in 2023.

Zhang was orphaned at the age of 10 and lived as a homeless person for seven years, only learning to read and write at 18.

In 2010, Zhang started working at a Taiwan chain milk tea shop and advanced from assistant to shop manager, regional supervisor and regional head.

In June 2017, he returned to his hometown of Kunming to establish CHAGEE, which rapidly achieved tremendous success in the mainland market.

Despite his financial success, Zhang leads a modest lifestyle, reportedly owning no real estate or car and having minimal material needs.

Yu Donglai

Yu Donglai, 58, who is often referred to as the “silliest boss in China,” was born into a farming family and began working after leaving junior secondary school.

He gained fame for prioritising employee well-being, such as introducing “unhappy leave,” which allows employees to decide their own rest periods, and establishing a “Grievance Award” that compensates employees with 5,000 to 8,000 yuan (US$700 to US$1,120) if they are mistreated by customers.

His entrepreneurial journey began with a 40-square-metre grocery shop in 1995.

By 1997, he shifted his focus to a tobacco and liquor business, eventually establishing the retail empire Pang Dong Lai.

The company now has 13 outlets in Xuchang and Xinxiang, three and four-tier cities in central Henan province, and is renowned as a “customers’ paradise” for its meticulous service.

Yu believes a true entrepreneur should be “healthy, happy, and lighthearted” and has said: “We are only a little more honest and kinder. It is sad if this makes you a legend.”