• [Sport] Three Americans released in US-China prisoner exchange
• 3 Americans, jailed for years in China, to return to US
• Will Trump’s return signal stormier waters for Beijing in South China Sea?
• US deploys fast-attack submarine to Guam, China marks space milestone: SCMP daily catch-up
• China reclaims No 1 physics research spot from US as scientists fight it out: report
• China extends reach into Latin America as crane exports, trade diversification pick up
• Chinese woman makes US$42,000 in 3 months from ‘flash’ marriages and divorces
• Why some experts say China urgently needs a crisis system to stop ‘lone wolf’ killings
• Chinese team’s cell turns ambient heat into power – no sunlight required
• Chinese Nintendo Switch users in limbo as Tencent winds down online services for console
• Philippines detains 13 undocumented Chinese nationals on ship, raising security fears
• China’s industrial profits drop in October as property slump flows downstream
• ‘Groundless’: China dismisses report about corruption probe into defence chief Dong Jun
• China investigates Shanghai free-trade-zone party chief for corruption
• Trump’s trade chief pick, a Lighthizer protégé, set to push hard line, tariffs on China
• China KOLs rent UN room, pay US$49,999 to attend Trump’s inauguration to build ‘elite persona’
• China declares space milestone in launch of ‘self-driving’ radar satellites
• Chinese EV makers’ ‘do-or-die’ moment, Hyundai’s US$500 million investment: 7 EV reads
• Security guards foil attempted bank robbery in southwestern China, man detained
• Police smash Korean-Chinese romance scam ring that stole US$92 million from 84 victims
• [Sport] 'No-one will win' - Canada, Mexico and China respond to Trump tariff threats
• Vietnam’s aircraft deal with US reflects closer ties – is China ‘not happy’?
• China’s central bank to cut reserve ratio again to add liquidity, aid growth: analysts
• Washington adds nuclear-powered submarine to Guam outpost as China rivalry grows
• Dutch-adopted man revisits China family, tells adoptive father ‘You’ll always be my dad’
• As China looks to rebuild bridges with Japan, will ‘better relations’ last beyond Trump?
• Hong Kong’s AI efforts connect China and rest of the world amid geopolitical tensions
• Antony Blinken urges G7 countries to maintain unity in face of China risks
• Electric vehicle deal with China is not close, top EU trade official says

[Sport] Three Americans released in US-China prisoner exchange

https://www.bbc.com/news/articles/cly2lp75vq4o

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3 Americans, jailed for years in China, to return to US

https://www.scmp.com/news/us/article/3288409/3-americans-jailed-years-china-return-us?utm_source=rss_feed

Three American citizens imprisoned for years by China have been released and are returning to the United States, the White House said on Wednesday, announcing a rare diplomatic agreement with Beijing in the final months of the Biden administration.

The three are Mark Swidan, Kai Li and John Leung, all of whom had been designated by the US government as wrongfully detained. Swidan had been facing a death sentence on drug charges while Li and Leung were imprisoned on espionage charges.

“Soon they will return and be reunited with their families for the first time in many years,” the White House said in a statement.

A US official said the Biden administration had raised their cases with China in multiple meetings over the last several years, including earlier this month when President Joe Biden spoke to Chinese President Xi Jinping on the sidelines of the annual Asia-Pacific Economic Cooperation summit in Peru.

Politico was first to report the men’s release.

Will Trump’s return signal stormier waters for Beijing in South China Sea?

https://www.scmp.com/news/china/military/article/3288390/will-trumps-return-signal-stormier-waters-beijing-south-china-sea?utm_source=rss_feed

China will face increased pressure from the US and its Indo-Pacific allies, especially in the South China Sea, analysts have warned, citing Washington’s consolidation of regional security alliances – including the first five-way meeting of defence ministers.

The defence chiefs of the United States, Japan, the Philippines, South Korea and Australia held talks last week in Laos, on the sidelines of the Asean-Defence Ministers’ Meeting-Plus (ADDM-Plus) security conference.

“Plus” refers to the eight dialogue partners, including China and the United States, that take part in the annual conference with the 10 Association of Southeast Asian Nations.

According to the Pentagon, the five-nation meeting last Thursday “underscored their shared commitment to advance a vision for a free, open, secure, and prosperous Indo-Pacific, where international law and sovereignty are respected”.

The outgoing Biden administration has been trying to step up Indo-Pacific security and defence engagement ahead of Donald Trump’s return to the White House.

While the president-elect’s “America first” agenda has raised uncertainties about US support for allies, it has also heightened concerns about a more hawkish approach towards China on sectors ranging from trade and chemicals to security.

Benjamin Barton, associate professor at the University of Nottingham’s Malaysia campus, said the objective of the five-way meeting was to “seek to maintain strong working ties among all of the US allies and security partners in the Indo-Pacific”.

“It’s quite obvious that for the time it has left in office, the Biden administration is going all out to continue what it has done over the past four years and that is to reinforce ties with its closest allies, as a means – among others – of containing China’s rise in the region,” Barton said.

“In order to alleviate the apprehensions that many of these allies might have regarding the return of Trump to the presidency, a lot of work is going on behind the scenes by different actors – diplomatic, military – to appease allied states that … the US is still committed to upholding its role in the Indo-Pacific.”

Trump’s second term could also raise uncertainties about Aukus – the trilateral security alliance set up by the US, Britain and Australia in 2021 to counter China’s military rise.

Aukus has discussed expanding defence technology sharing beyond the original trio, with Japan, South Korea, New Zealand and Canada reportedly listed as prospective partners under its Pillar 2 programme, which includes cooperation in areas such as artificial intelligence, hypersonics and electronic warfare.

Pillar 1 supports Australia’s acquisition of conventionally armed nuclear-powered submarines.

Nuclear-powered submarines and advanced weapons such as hypersonic missiles or unmanned platforms are seen to give the US and its allies an edge in combat readiness and stealth capabilities against Beijing in potential regional flashpoints such as the South China Sea or the Taiwan Strait.

A joint statement following the latest Trilateral Defence Ministers’ Meeting between the US, Japan and Australia on November 17 welcomed “progress on” Pillar 2 talks with Japan, “with the initial focus to improve interoperability with Japan’s maritime autonomous systems”.

The Philippines, a long-time US treaty ally, was the only Asean member at Thursday’s meeting in Laos, which came three days after a bilateral military intelligence-sharing deal signed during US Defence Secretary Lloyd Austin’s visit to Manila.

Tensions are high between Manila and Beijing after a string of confrontations in disputed areas of the South China Sea, where several other Asean states also contest China’s expansive claims.

The US also plans to deploy advanced missile units in Japan and the Philippines as part of a contingency plan for any military conflict in the Taiwan Strait.

Observers urged Beijing to watch out for the initial signs from Trump, who has pledged to contain China. This could see him tackle both the Taiwan Strait and the South China Sea via stronger regional alliances, they said.

“Beijing must focus on observing what Trump does less than two months [after taking office in January],” said Shi Yinhong, professor of international relations at China’s Renmin University.

“He would do what [US President Joe] Biden has done … such as freedom of navigation operations as well as joint drills. Trump might further boost the deployment of longer-range cruise missiles in the Philippines, [the Japanese island of] Okinawa and [US Pacific naval base of] Guam, aimed at the [mainland] Chinese military over the issue of Taiwan.”

Beijing sees Taiwan as part of China to be reunited by force if necessary. The United States, like most countries, does not recognise self-governed Taiwan as an independent state, but is opposed to any attempt to take the island by force and is committed to arming it for defence.

Stephen Nagy, a professor at Tokyo’s International Christian University, said Manila was viewed as a “key domino” in regional security cooperation. Its fall would complicate the US security alliance in the region and might give Beijing the upper hand in South China Sea disputes, he said.

“The inclusion of the Philippines [in multilateral security talks] and investing in its economy, infrastructure, security and technology are meant to prevent that from happening,” Nagy said.

Chester Cabalza, president of International Development and Security Cooperation, a Manila-based think tank, said the Philippines had been benchmarking with advanced US allies Japan and South Korea in cooperation with Aukus.

“The Philippines is agile to China’s grey zone tactics in which strategic partners are willing to share their advanced defence weapon systems and information,” Cabalza said.

Cabalza said the push for the five countries to expand military might and interoperability in the South China Sea was likely to prompt Beijing to “escalate tensions and exercise its wrath, most likely towards the Philippines since Manila is the weakest link in the [Indo-Pacific] coalition”.

“The future cooperation of the Indo-Pacific allies is seen as dynamic since Trump will redraw a stronger partnership with Indo-Pacific allies to counter China’s growing influence in Asean and the Pacific.”

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US deploys fast-attack submarine to Guam, China marks space milestone: SCMP daily catch-up

https://www.scmp.com/news/china/article/3288373/us-deploys-fast-attack-submarine-guam-china-marks-space-milestone-scmp-daily-catch?utm_source=rss_feed

Catch up on some of SCMP’s biggest China and Economy stories of the day. If you would like to see more of our reporting, please consider .

Donald Trump’s second White House term is bound to bring new China tariffs – but analysts wonder if it will bring manufacturing back.

The US has deployed one of its newest nuclear-powered, fast-attack submarines to Guam – the first vessel of its class to be based at the strategic military outpost – in a strengthening of its power projection in the face of growing rivalry with China.

In a rare move, Taiwan’s military is using a Taipei university campus to train reservists to prepare for the possibility of urban warfare against the People’s Liberation Army (PLA), prompting concerns and criticism.

The G7 major industrialised nations are increasingly aligned on the “economic and security risk” posed by China and the policies it is pursuing, US Secretary of State Antony Blinken said on Tuesday at the conclusion of a foreign ministers meeting.

China has launched the world’s first “self-driving” satellites that can maintain or change their flight course without any help from the ground, according to their developer.

China’s central bank is expected to further cut the amount of cash that commercial banks must hold as reserve by another half a percentage point in December to inject more liquidity into the market and also shore up economic growth, analysts said.

The European Union and China are not close to finalising a deal that would end their long-running electric vehicle dispute, according to a senior EU official, who called reports suggesting otherwise “confusing”.

China reclaims No 1 physics research spot from US as scientists fight it out: report

https://www.scmp.com/news/china/science/article/3288400/china-reclaims-no-1-physics-research-spot-us-scientists-fight-it-out-report?utm_source=rss_feed

China is once again the world No 1 in physics research after losing out to the United States last year, according to an annual Chinese report.

The “Research Fronts” report assesses the scientific activities and trends in major countries at a time of global competition for innovation and technological advancement.

The 2024 report was jointly released in Beijing on Wednesday by the Chinese Academy of Sciences’ Institutes of Science and Development (CASISD), the National Science Library of China, and global analytics company Clarivate.

Physics research in China, which ranked first in the world in 2022, had regained the top spot after losing it to the US last year, the report said.

Other top research fields for China were agricultural, plant and animal sciences; chemistry and materials sciences; and information sciences, according to the report.

The Research Fronts report is mainly based on data from Essential Science Indicators (ESI) – an analytical tool that covers a multidisciplinary selection of over 11,000 academic journals worldwide, and provides data for ranking authors, institutions, countries and journals.

Its tracking and analysis of highly influential and cited papers published in recent years identified 110 trending and 15 emerging research frontiers across 11 broad research categories, ranging from information science to clinical medicine.

Based on those findings, the Chinese report devised a metric called the Research Leadership Index to further assess research activity by country or region, as well as research output and impact. The analysis revealed a landscape marked by intense rivalry.

“Research Fronts represents the most dynamic scientific and technological fields and directions of common interest to scientists,” CASISD researcher Yang Fan said as the report was released.

“It can provide an information base for analysing the direction of the world’s science and technology frontiers … and help [China] accelerate the seizure of the high ground in science and technology,” she said.

The annual reports have been published since 2014. The latest one shows that in terms of the overall performance in the 11 fields, the US has led the way on basic research for the past five years, while China remained in second place.

But the rival powers are locked in a heated competition. For example, in ecology and environmental sciences, China was the most active country last year, but was overtaken by the US this year.

In 2021, China led the world in seven out of the 11 active research frontiers, while the United States ranked first in the remaining four.

The situation has reversed over the past three years, with the US leading in seven major research fields compared to China’s four.

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China extends reach into Latin America as crane exports, trade diversification pick up

https://www.scmp.com/economy/global-economy/article/3288381/china-extends-reach-latin-american-crane-exports-trade-diversification-picks?utm_source=rss_feed

Exports of Chinese cranes are flooding into some Latin American countries, suggesting active expansion in construction activities under Beijing’s Belt and Road Initiative and paving the way for diversification amid the looming trade war with the United States, analysts said.

Crane exports to Peru rose by nearly 132 per cent year on year in October, according to Chinese customs data, while total shipments of the machinery – which can be used to load and unload container ships – increased by nearly 76 per cent in the first 10 months of the year to US$143 million.

In May, China’s crane exports to Peru went up from less than US$100,000 a year earlier to over US$54 million, just as the Biden administration announced a punitive tariff of 25 per cent on imports of Chinese ship-to-shore cranes into the US.

“It is more likely that these cranes are for port construction,” said Liang Yan, an economist at Willamette University in the US state of Oregon.

“It is unlikely that US importers foresaw the tariff and ordered the cranes ahead of time to be delivered this year.”

Washington has alleged Chinese port cranes have been equipped with surveillance systems, with the new duties taking effect on September 27.

China’s crane exports to Mexico have also grown rapidly, rising by 193 per cent year on year for the January to October period. In August, exports surged by 1,202 per cent.

“The increase in cranes is likely to suggest that China is expanding port capacity in these countries to export from Latin America to the US,” said Alicia Garcia-Herrero, chief economist for the Asia-Pacific region at French investment bank Natixis in Hong Kong.

“China will do mostly transshipping, which means they could change the labelling and it will be difficult for the US to identify some of their sources.”

Beijing is actively expanding its influence in Latin America’s ports, opening the Chancay container megaport in Peru during a visit by President Xi Jinping earlier this month.

The port is set to shorten shipment times between Shanghai and Peru by between 10 and 12 days to about 23 days and lower logistics costs by at least 20 per cent.

China’s state-owned Shanghai Zhenhua Heavy Industries dominates the global market for ship-to-shore cranes, with a staggering 70 per cent market share.

According to a US congressional report from September, the company manufactures 80 per cent of the ship-to-shore cranes used in US ports, including 10 strategic seaports.

Shanghai Zhenhua, which has been active in projects under China’s Belt and Road Initiative – a broad strategy to enhance regional connectivity through infrastructure – has delivered 18 cranes to Panama over the past three months, according to Seatrade Maritime News.

In Panama, home to the famed canal that plays host to about 5 per cent of global seaborne trade, China’s crane exports skyrocketed by 1,150 per cent year on year in the first 10 months of 2024, including a 5,497 per cent increase in June.

The surge in port construction across Latin America has driven a 47 per cent year on year increase in China’s crane exports to the region during the first 10 months of the year, according to Chinese customs data. This is more than double the growth rate of its overall exports.

However, Garcia-Herrero pointed out potential risks for China-invested or constructed ports like Chancay, suggesting that US president-elect Donald Trump could ban products originating from the ports as a means to prevent Chinese goods from entering the US market.

Last month, China’s crane exports to the US dropped by nearly 66 per cent year on year.

The reduction may be exacerbated further by Trump, who on Monday said that he would impose a 25 per cent tariff on imports from Mexico – a popular destination for Chinese exporters seeking to bypass duties on direct shipments – using an executive order on the first day of his new administration, which is set to start on January 20.

Reports by the Centre for Strategic and International Studies revealed that China has invested in port projects in 16 of the top 20 countries or territories for shipping connectivity.

The Washington-based think tank said more than 27 per cent of global container trade last year passed through terminals where firms based in mainland China and Hong Kong held direct stakes.

Hong Kong-based Hutchison Port Holdings operates seven ports in Latin America and the Caribbean, CSIS said; four in Mexico, two in Panama and one in the Bahamas.

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Chinese woman makes US$42,000 in 3 months from ‘flash’ marriages and divorces

https://www.scmp.com/news/people-culture/trending-china/article/3288086/chinese-woman-makes-us42000-3-months-flash-marriages-and-divorces?utm_source=rss_feed

A group of matchmaking companies in southwestern China has come under police scrutiny for defrauding desperate single men out of significant sums of money, while some women posed as potential brides in the scam.

Some of these women earned as much as 300,000 yuan (US$42,000) within months.

According to a statement from a court in Guiyang, Guizhou province, released in September, a police station in the Huaguoyuan area has received 180 reports of matchmaking fraud since March last year.

During this period, the court has resolved 50 disputes involving substantial matchmaking fees, as reported by Red Star News.

Before the authorities initiated their crackdown, many of these matchmaking agencies rented upscale office spaces in Huaguoyuan to enhance client trust.

Some staff actively sought out single men from small and remote cities across the country, while others focused on recruiting single women, most of whom were divorced and in debt, persuading them to participate in the scam to deceive male customers.

In numerous instances, just days after male clients met the women arranged by the agency, they agreed to marry. They were instructed to sign contracts with the agency and pay hundreds of thousands of yuan as a bride price.

These marriages are referred to as “flash weddings” because the brides would often flee, vanish, or pressure the men into divorce through various means, including frequent conflicts after a brief period together.

One woman, notorious in the industry, reportedly earned 300,000 yuan in three months by engaging in multiple flash marriages.

According to reports, she registered for marriage with a client in December last year, only to file for divorce shortly thereafter, claiming domestic violence. She did not return the 170,000 yuan bride price to the man and even took some shared property, including a car he had bought for her.

After the divorce, the woman continued to go on blind dates while the agency concealed her divorce status.

One victim of this scam, a man surnamed Liao, shared his experience on Red Star News.

In May, Liao travelled to Guiyang from his hometown in central Hubei province to meet a woman introduced by an agency, with whom he registered for marriage just two days later. He also paid a cash gift of 118,000 yuan (US$16,000) to the bride’s family.

In the two months following their wedding, Liao’s wife frequently left their hometown to return to Guiyang. She requested that he buy her a home and a car and often quarrelled with him.

Liao later discovered that she had concealed the fact that she had given birth to five children previously.

When Liao sought a refund from the agency in Guiyang, he found that the company had been shut down due to a police investigation.

A former customer service representative at one of the agencies before the police raid informed the Red Star News that there was no shortage of male customers.

“We do not worry about the source of male customers at all. There are many across the country,” the worker was quoted as saying. “We can select a male customer for blind dates from 40 to 50 candidates every day.”

He noted that following the intensified crackdown by Guiyang authorities, some of these agencies had relocated their operations to nearby Yunnan province.

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Why some experts say China urgently needs a crisis system to stop ‘lone wolf’ killings

https://www.scmp.com/news/china/politics/article/3288319/why-some-experts-say-china-urgently-needs-crisis-system-stop-lone-wolf-killings?utm_source=rss_feed

China needs a crisis intervention system to identify high-risk individuals to help prevent the kinds of “lone wolf” attacks that have left more than 40 people dead this month, according to two legal experts.

“We need to put more effort into mental health crisis intervention and conflict resolution, and urgently establish a systematic prevention mechanism,” the experts said in an article published on Chinese news site Guancha.cn on Monday.

The authors – Gao Yandong, deputy dean of the Institute of Digital Rule of Law at Zhejiang University in Hangzhou, and research assistant Liu Yicen – cited two deadly attacks this month as examples of how China’s public security system needed to provide “clear legal bases and operational norms” for “identifying high-risk individuals”.

The first case involved a vehicle ramming in the southern city of Zhuhai in which 35 people died and the second was a stabbing in the eastern province of Jiangsu that killed eight.

Authorities said the suspect in the Zhuhai attack was upset about a divorce ruling, while the 21-year-old Jiangsu stabbing suspect was a university student who had been denied his graduation certificate after failing exams and was also angry about the low pay he received as a factory intern.

In both cases, the suspects should have received psychological help, Gao and Liu said in the article.

While the authorities had stepped up security after the attacks to prevent similar incidents, the approach lacked an early intervention strategy for “potential threats” and was unable to “fundamentally prevent extreme incidents”.

And counselling services on campuses and in residential areas “are often more a formality and do not effectively reach high-risk individuals”, the researchers said.

Government departments were also not sharing enough information with each other, compounding problems with identifying suspicious behaviour early, they said.

China should look at laws in the United States and Germany to build a legal system that could prevent “extreme violent incidents”, while focusing on “preventive intervention and complementary post-incident handling”, Gao and Liu suggested.

Such laws should cover schools, residential areas and workplaces, they added.

To help identify and counsel individuals at high-risk of violent behaviour, officially certified mental health workers could make regular visits to “elderly people who live alone, the unemployed and mentally stressed young people”, the article said.

Authorities are still investigating the mass killing in Zhuhai, the worst attack of its kind in recent years and described by President Xi Jinping as “extremely vicious”.

China’s top police body, the Ministry of Public Security, and the Supreme People’s Procuratorate, the country’s top prosecutor, said they would swiftly handle similar “vicious crimes” and deal with them severely.

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Chinese team’s cell turns ambient heat into power – no sunlight required

https://www.scmp.com/news/china/science/article/3288316/chinese-teams-cell-turns-ambient-heat-power-no-sunlight-required?utm_source=rss_feed

Chinese researchers say they have found a way to continuously produce electricity from water within a sealed container, drawing heat from the surrounds to create vapour for power generation.

While solar-based hydrovoltaic cells need sunlight to work, the team from the Chinese Academy of Sciences say their cell does not – and its resistance to wind and humidity means it could be used in harsh environments like deserts and in the dark.

“We fabricate a hermetic hydrovoltaic cell (HHC) to harvest ambient heat and have fully addressed the limitations posed by environmental conditions,” the team wrote in a paper published in peer-reviewed journal Nature Communications on November 12.

“We anticipate that the hermetic hydrovoltaic cell and the internal circulation hydrovoltaic effect enables the generation of electricity with low cost, easy accessibility, and wide applicability.”

They said their cell achieved stable electricity output for 160 hours with negligible water consumption, which could make it a good candidate for extreme environments like water-scarce deserts, humid tropical rainforests and underground engineering sites.

Hydrovoltaic electricity generation – which captures energy from the interaction of water with surfaces – is a source of green energy that can help reduce reliance on fossil fuels.

But the application of hydrovoltaic generators has been limited by environmental conditions such as light and wind. The team said current hydrovoltaic approaches require low humidity to function and they continuously consume water.

To overcome these challenges, the researchers designed a sealed cell with an internal electricity generation unit made from carbon black and tissue paper to allow for capillary action.

“The slight fluctuations in ambient temperature and the designed heterogeneous wicking bilayer enable the continuous evaporation and capillary flow inside the hermetic cell, forming [a] water circulation process,” the team wrote.

Ambient heat, which is an inexhaustible low-grade energy source, is harnessed through the capillary evaporation and outputted in the form of electricity.

“Although the HHC exhibits a moderate open-circuit voltage, considering its zero-water consumption, it still possesses the highest energy conservation efficiency,” the researchers said.

The team said they had discovered a previously unknown internal circulation hydrovoltaic effect by investigating the energy harvesting capability within their cell.

The study also found that perpetual temperature fluctuations – which are usually detrimental during energy harvesting – could allow for stable energy generation using closed-loop circulation within a cell.

“It is anticipated that the universal applicability, the stable output, and the non-consumption make the HHC and this sustainable water circulation strategy efficient for a wide variety of situations,” the researchers said.

“Moreover, the constructed water circulation system as well as the associated energy conversion processes would definitely inspire the innovative design of diverse devices.”

Chinese Nintendo Switch users in limbo as Tencent winds down online services for console

https://www.scmp.com/tech/big-tech/article/3288377/chinese-nintendo-switch-users-limbo-tencent-winds-down-online-services-console?utm_source=rss_feed

Tencent Holdings will gradually cut off online sales and services for the Chinese version of the Nintendo Switch console from 2026, potentially affecting millions of users in the world’s second-largest video gaming market.

The Tencent-operated eShop for the Chinese Nintendo Switch console will stop selling or offering paid and free video games and software on March 31, 2026, according to a statement published on Tuesday on the console’s mainland website. Certain downloads and code redemptions, as well as other online services, will be shut down several weeks later on May 15.

To compensate affected users, Tencent said it will offer four Nintendo games free of charge from a list of titles that include Super Mario Odyssey and Pokemon: Let’s Go! Pikachu.

Both Tencent, which runs the world’s largest video-gaming business by revenue, and Kyoto-based Nintendo did not state the reason for ending local online support for the Chinese Switch consoles.

The Chinese Nintendo Switch will continue to be available for sale in the country after online sales and services cease, as users can buy titles on physical game cards that are inserted into the console, according to the official statement.

Tencent had partnered with Nintendo on Switch in 2019, when regulators gave the green light for the Chinese version of the Switch console to be sold on the mainland in April that year. Shenzhen-based Tencent has served as the console’s regional authorised distributor.

Still, the decision to end online sales and support for the Chinese Nintendo Switch have not only put users in limbo, but also clouds the prospects of getting a domestic version of the updated Switch console that Nintendo is expected to launch before April 2025.

Many Chinese gamers expressed their disappointment at the announcement. “I used to have high hopes for the Chinese version [of the Nintendo Switch console] when it was launched,” Qiu Yuxin, a gamer based in southern Hunan province, said on Tuesday. “It’s sad to see things fall short of our expectations.”

On the mainland, foreign video gaming companies are required to partner with local firms to get the industry regulator’s approval for domestic release of new titles. That covers all games played on either a console, smartphone or PC.

The world’s three major video game console makers – Nintendo, Sony Interactive Entertainment and Microsoft – have struggled for years to attract more consumers to use the official Chinese versions of their devices.

Many gamers in the country typically purchase overseas versions of those consoles, which are sold on the mainland’s grey market, or stick to playing mobile game titles as well as online personal computer games.

According to a report by China’s Audio-Video and Digital Publishing Association, console game sales in the country reached 2.9 billion yuan (US$400 million) in 2023. That accounted for less than 1 per cent of that year’s 303 billion yuan total domestic game sales, 75 per cent of which were mobile game purchases.

Philippines detains 13 undocumented Chinese nationals on ship, raising security fears

https://www.scmp.com/week-asia/politics/article/3288396/philippines-detains-13-undocumented-chinese-nationals-ship-raising-security-fears?utm_source=rss_feed

The Philippine coastguard has detained over a dozen undocumented Chinese nationals found aboard a dredging vessel off the coast of Bataan, as experts warn the move could provoke retaliatory measures from Beijing against Filipinos working in China.

Jay Tarriela, a spokesman for the Philippine coastguard (PCG), said on Wednesday the agent of the dredger vessel “Harvest 89” had notified authorities the day before of its coming departure to San Felipe, Zambales, for dredging operations.

“However, when the PCG attempted to board the vessel for a Pre-Departure Inspection and to secure the Master’s Declaration of Safe Departure (MDSD), the agent denied entry, claiming that all necessary documentation was in order. This prompted our personnel to perform a more detailed inspection,” Tarriela said.

“Upon boarding, the PCG composite team discovered nine undocumented Chinese crew members, all without proper documentation,” he said. Four more Chinese crew members found hiding during a follow-up investigation also did not have proper documentation, he added.

A uniform, which Tarriela described as resembling that of China’s People’s Liberation Army, was found in the crew quarters, raising concerns about the intentions of the undocumented individuals.

The incident comes as Manila tightens visa controls aimed at countering fraud and operations of the illegal offshore gaming sector.

Philippine authorities implemented the policy in May after the discovery of fraudulent immigration applications that had led to foreigners illegally entering and overstaying in the country.

There have been previous instances where undocumented Chinese nationals were arrested in the Philippines. However, what made the case on Tuesday notable was the discovery of a PLA uniform aboard the dredger vessel.

In September, seven Chinese nationals were apprehended by the PCG aboard the Philippine dredging vessel M/V Sangko Uno found at the Navotas City port for violation of immigration laws.

The immigration office said the suspects were unlawfully operating within Philippine waters without proper documentation.

Lucio Blanco Pitlo III, president of the Philippine Association of Chinese Studies and a research fellow at Asia-Pacific Pathways to Progress, told This Week in Asia that it was hard to tell whether the latest case was related to espionage.

“But if there are violations of illegal entry … they are undocumented … they are not in the manifest … and no working permits, these are clear violations and we have to take appropriate measures,” Pitlo III said.

When asked whether the Philippine response could be seen as paranoia, Pitlo III acknowledged it might appear so but said the PCG’s concerns were valid.

“We have to keep guard against paranoia. There are also Filipinos in mainland China. So far, we don’t hear any crackdown. But if there are several of these kinds of cases, it might invite similar measures of the Chinese government against Filipinos,” Pitol III said.

Another expert, when asked whether the undocumented Chinese nationals were part of Beijing’s broader infiltration strategy, said such activities have been occurring for some time.

“These are what I refer to as weaknesses in administrative systems that can be exploited,” Sherwin Ona, a political-science professor at De La Salle University in Manila, told This Week in Asia.

“Malign actors can use these weaknesses to their advantage. The challenge for the Philippines is to have an integrated immigration and civil registry system address these gaps,” he added.

The Armed Forces of the Philippines said on Tuesday it has received reports about alleged mining of black sand in Zambales, which was then shipped to China.

“We are taking this very seriously, considering that black sand and rare earth minerals have military technology applications,” said Roy Vincent Trinindad, a Philippine Navy spokesman for the West Philippine Sea.

But Wilson Lee Flores, a political-economic analyst and honorary chairman of the Anvil Business Club in Manila, argued that the undocumented Chinese apprehended in Bataan could be minor crooks, smugglers or linked to offshore gaming operators.

Pogos are Philippines-based online gambling firms that cater mostly to customers from mainland China, where gambling is illegal.

In July, President Ferdinand Marcos Jnr declared an immediate ban on Pogos during his State of the Nation address, following reports of criminal activities linked to their operations.

Flores told This Week in Asia: “If it were a case of espionage, it wouldn’t involve such low-level operations. They should have used drones or satellites. It does not make sense.”

He said the issue could have been exploited by “certain forces” to paint China in a bad light.

“I could see a large emergence of black propaganda. Anything China, that’s a spy. Anything China, that espionage. There are personalities proliferating black propaganda and the media reports it on a daily basis. That’s why we ended up having paranoia. But it’s not the fault of the people. It’s being manipulated by certain forces,” he added.

Flores said Manila should strive to normalise its relations with China as part of measures to counter potential threats.

“I am apprehensive that this pervasive anti-China sentiment, bordering on hostility, could be exploited for harmful demagoguery by politicians, which poses a threat to our national stability and the integrity of our foreign relations with China, our neighbouring country and trading partner.”

However, Chris Gardiner, CEO of the Institute for Regional Security in Canberra, said that Chinese authorities should explain the apparent illegal actions by the ship’s crew and breaches of the Philippines’ borders and immigration controls.

“The general issue comes back to the prudence of the Philippines government in expediting its coastguard expansion and working with allies such as the US, Japan, and Canada on maritime awareness capabilities,” Gardiner told This Week in Asia.

“Given the size of the Chinese commercial and fishing fleets, future deterrence will require investment in advanced surveillance technologies, agile interdiction, clear sanctions, and evidence-based narratives to expose the continuous probing and infiltration of [Philippine] waters and territory,” he added.

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China’s industrial profits drop in October as property slump flows downstream

https://www.scmp.com/economy/economic-indicators/article/3288387/chinas-industrial-profits-drop-october-property-slump-flows-downstream?utm_source=rss_feed

China’s large industrial firms reported a steep decline in profit for October – particularly among those linked to the property and retail sectors – with more pressure expected from tariff hikes after US president-elect Donald Trump takes office.

Their combined profits went down by 10 per cent year on year last month, the National Bureau of Statistics in Beijing said on Wednesday. The total for January through October fell 4.3 per cent from the same period last year to 5.87 trillion yuan (US$810.9 billion), worse than the 3.5 per cent drop recorded in the first nine months.

A loss of 23.3 billion yuan was reported for steel firms in the first 10 months, while the “petroleum, coal and other fuels” enterprises shed 37.7 billion yuan in profits. In the non-metallic minerals sector, profits tumbled 49.6 per cent in the same period.

State-controlled industrial firms reported a fall of 8.2 per cent to 1.85 trillion yuan, while major enterprises from foreign territories as well as Hong Kong, Macau and Taiwan posted 1.46 trillion yuan in combined profits over the first 10 months, up 0.9 per cent over the same period in 2023.

Domestic private enterprises saw a combined profit of 1.65 trillion yuan, down 1.3 per cent.

Analysts attributed the declines in manufacturing and the production of certain materials to weak construction demand, a casualty of an ongoing slump in the property market.

“The property market is down, so it affects all the upstream industries,” said Andy Xie, an independent economist in Shanghai. He pointed to steel, cement and heavy equipment as sectors likely to miss profits.

Enterprises had also struggled to absorb “excess capacity” through exports and domestic demand, market research firm TrendForce said in October.

Chinese electric vehicle giant BYD has circulated a letter asking suppliers to cut prices in advance of the heightened competition it expects next year, the Yicai news outlet said on Wednesday.

Automotive industry profits declined 3.2 per cent from a year earlier to a combined 375.8 billion yuan in the first 10 months, per the statistics bureau.

“You don’t have demand for machinery [and] you don’t have demand for autos or for large machines,” said Andrew Collier, China analyst with economic research firm GlobalSource Partners.

However, preferential lending policies under a series of economic stimulus measures steadily rolled out since September may have helped some enterprises make money, Collier said.

Zhang Zhiwei, president of Pinpoint Asset Management, said China’s manufacturing faces “pressure due to weak domestic demand” and that stress on the economy could mount with a resurgent trade war on the horizon.

On Monday, Trump threatened to raise tariffs on Chinese goods by 10 per cent on January 20, the first day of his second term.

The data did provide some bright spots, however.

Profits to major Chinese utility companies, which benefited from price hikes this year, rose 13.8 per cent year on year in the first 10 months of 2024. Producers of electronic equipment, including computers, saw an 8.4 per cent rise in profit.

Tech profits, Xie said, reflect China’s shift from traditional manufacturing to newer industries like semiconductor chips, aviation and electric vehicles.

“China’s economy will be very different in 10 years’ time,” he added.

‘Groundless’: China dismisses report about corruption probe into defence chief Dong Jun

https://www.scmp.com/news/china/military/article/3288366/groundless-china-dismisses-report-about-corruption-probe-defence-chief-dong-jun?utm_source=rss_feed

China’s foreign ministry has described a report that Defence Minister Dong Jun is under investigation as “groundless”.

Financial Times reported on Wednesday morning, citing current and former US officials, that Dong was the third consecutive serving or former Chinese defence minister to be investigated for alleged corruption.

On Wednesday, foreign ministry spokeswoman Mao Ning said the report was “shadow chasing”.

The wording differed from the ministry’s response to a report in the same newspaper in September of last year about former defence minister Li Shangfu. That report quoted US officials as saying that Li, who had disappeared from public view for more than two weeks, was under investigation. At the time of the report, Mao said she “did not know the situation”.

Li was dismissed at a meeting of the top legislature more than a month later.

Dong, 63, was appointed to the role last December. He succeeded Li, who was ousted after just seven months in the job and expelled from the ruling Communist Party for alleged graft. Li’s predecessor Wei Fenghe was also kicked out of the party on corruption allegations.

Unlike in Western countries, China’s defence minister is not the most powerful military figure in the system, which is headed by President Xi Jinping as chairman of the decision-making and command body, the Central Military Commission. The defence minister instead serves primarily as the international face of the People’s Liberation Army.

But Dong does not wield the same power as his predecessors. As defence ministers, Li and Wei were both also members of the CMC as well as state councillors – a senior role in the cabinet. Dong holds neither of these titles.

CMC membership means direct access to Xi, while the state councillor role provides direct access to Premier Li Qiang, who ranks second in the party and heads the government.

Dong’s last public appearance was on November 21, when he gave a speech at a meeting of Association of Southeast Asian Nations defence ministers in Vientiane, Laos.

He refused to meet US Defence Secretary Lloyd Austin on the sidelines of that gathering, which Beijing said was because of Washington’s recent arms sales to Taiwan. Dong and Austin did meet at a security forum in Singapore in May, the first time defence chiefs from the two sides had held talks since November 2022.

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China investigates Shanghai free-trade-zone party chief for corruption

https://www.scmp.com/news/china/politics/article/3288357/china-investigates-shanghai-free-trade-zone-party-chief-corruption?utm_source=rss_feed

The party chief of Shanghai’s Pudong New Area, Zhu Zhisong, has been placed under investigation on suspicion of corruption.

Zhu, 55, who is a veteran in the aerospace field, is suspected of committing “serious violations of discipline and law”, said the Central Commission for Discipline Inspection (CCDI), the Communist Party’s top graft-busting agency, on its website on Wednesday. The charge is a euphemism for corruption.

Zhu is the first party chief of Shanghai’s Pudong New Area to be subjected to a probe since the district, a major testing ground for China’s economic reforms, was established in 1992.

However, he is the second “tiger”, or senior official, in Shanghai targeted by the CCDI since the Communist Party wrapped up a major reshuffle at its 20th party congress in October 2022.

In July last year, Dong Yunhu, Shanghai’s top legislator, was placed under investigation for corruption. In August this year, Dong was sentenced to life in prison for accepting 148 million yuan in bribes.

Zhu’s last public appearance was on Monday afternoon, when he carried out an inspection tour of two local villages in Pudong New Area.

This month, Zhu attended the Hongqiao International Economic Forum where he told a meeting on November 6 that Pudong would further promote institutional opening-up and better align with the high-standard international economic and trade rules, state media reported.

Zhu was quoted as saying that better and more efficient services would be provided to foreign-funded enterprises, and that domestic enterprises would also be better served when doing business in overseas markets.

Pudong became the mainland’s first free-trade zone in 2013, with a total area of 120 sq km (46 square miles). In 2021, Pudong received greater freedom to enact legislation, offer tax breaks and liberalise the capital market to spur growth.

A Jiangsu native, Zhu graduated from Harbin Institute of Technology and worked in Shanghai’s aerospace system for more than two decades before being appointed deputy head of the municipality’s publicity department in 2014.

He later served in several roles, including party chief of the city’s Minhang district and the municipal government’s deputy secretary general. In 2021, he was appointed party chief of Pudong New Area.

A standing committee member of the Shanghai party committee, Zhu also oversees the China (Shanghai) Pilot Free Trade Zone’s management committee.

Early in his career Zhu held various positions at the city’s aerospace bureau- the Shanghai Academy of Spaceflight Technology – before being appointed its director in 2008.

His career at the bureau crossed with Dai Shoulun, who was the bureau’s deputy director. In August, Dai, who was party chief of Mudanjiang in northeastern China’s Heilongjiang province, was put under investigation for corruption.

In December last year, three senior Chinese aerospace-defence executives were stripped of their titles as members of the Chinese People’s Political Consultative Conference, China’s top national political advisory body, in a sign Beijing is continuing its anti-corruption efforts in the sector that is key to China’s military capacity.

The trio – Wu Yansheng, chairman of the China Aerospace Science and Technology Corporation, Liu Shiquan, chairman of the board of the China North Industries Group Corporation, and Wang Changqing, deputy manager of the state-owned China Aerospace Science and Industry Corporation – had their seats revoked.

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Trump’s trade chief pick, a Lighthizer protégé, set to push hard line, tariffs on China

https://www.scmp.com/economy/global-economy/article/3288351/trumps-trade-chief-pick-lighthizer-protege-set-push-hard-line-tariffs-china?utm_source=rss_feed

Jamieson Greer’s nomination as the next US trade representative, having been described by president-elect Donald Trump as a key figure in the first trade war with China, is expected to lead to a hard line taken in trade relations between the world’s two largest economies.

The protégé of Robert Lighthizer, a protectionist who served as trade representative during Trump’s first term, would focus on “reining in the country’s massive trade deficit”, said Trump on Tuesday as he vowed harsh policies on China.

International trade lawyer Greer, who was chief of staff to Lighthizer, will assume the role pending Senate confirmation as the new administration is anticipated to seek aggressive tariff increases.

“As a mentee of Lighthizer, Greer’s stance might be similar,” said Xu Tianchen, a senior China economist with The Economist Intelligence Unit.

“Don’t expect him to be kinder than Lighthizer – he will continue to take a hard line on China and actively push for tariffs.”

Trade ties between the US and China would be on a tighter rope with Greer’s appointment, said He Weiwen, a senior fellow with the Centre for China and Globalisation, a Beijing-based think tank.

He stressed that the potential revoking of China’s permanent normal trade relations status could be the biggest blow to relations following a recommendation earlier this month by the US-China Economic and Security Review Commission.

On Monday, Trump vowed to impose tariffs of 25 per cent on imports from Mexico and Canada, as well as additional duties of 10 per cent on Chinese goods, unless the counties halted flows of fentanyl and illegal migrants into the US.

The threat came on top of Trump‘s pledge to impose tariffs of 60 per cent on Chinese imports and between 10 and 20 per cent on all other imports.

Greer, a partner at the King & Spalding law firm in Washington, “played a key role” during Trump’s first term in imposing tariffs on China and other nations to “combat unfair trade practices”, according to Trump.

“Greer appears to be a hardline protectionist like his mentor Lighthizer and is on board with Trump’s proposed tariffs as a means of narrowing the trade deficit and bringing jobs back to the US,” said Joe Mazur, a senior analyst at research consultancy firm Trivium China.

“He was also involved with the negotiations over the phase-one trade deal and will presumably be familiar with his Chinese interlocutors.”

Greer will take over from Katherine Tai, a China expert who has expressed scepticism about the efficacy of Trump’s trade war tactics but continued many of the policies under the Biden administration, while also seeking to strengthen US alliances to confront China.

Tai’s approach is also seen to underscore a commitment to addressing long-standing concerns, such as China’s intellectual property theft, forced technology transfers and market access barriers.

Expectations for tariff increases are rising among American businesses, but many doubt they would benefit the US.

“Trump used tariffs in his first term, so it should come as no surprise that he is again considering them as a tool,” said Michael Hart, president of the American Chamber of Commerce (AmCham) in China.

“Many of our companies will be scenario planning accordingly.”

Noting that members were generally not in favour of tariffs, he added, “Trump is also known as a negotiator, so it is also no surprise that he is stating targets for specific countries.”

“In some specific cases, tariffs may be helpful as remedies and he has stated why he has proposed them, which gives more clarity to his logic.”

For European companies operating in China, they are concerned about heightened US-China tensions and spillover effects, particularly in relation to the potential imposition of tariffs on goods exported from China to the US and export controls on strategic goods.

“European businesses operating in China increasingly find themselves caught between a rock and a hard place due to China’s increased focus on national security and an increase in geopolitical tensions,” said Adam Dunnett, secretary general of the European Union Chamber of Commerce in China.

“They are also now facing a patchwork of legal and compliance obligations from different markets, which undermines the efficiency of global supply chains.”

With an aim of re-industrialisation, Trump and his supporters have argued that China is accountable for the decline of American manufacturing and vowed to reduce the US trade deficit with China.

During Lighthizer’s tenure, tariffs were imposed as a tool to force China into negotiations, which led to a phase-one trade deal in January 2020 that saw some commitments from China to purchase American goods.

Critical of China’s state-led economic model, Lighthizer had emphasised the importance of a tough and unilateral approach to compel China to comply with international trade rules.

And with the nomination of his protégé Greer, “expect the same playbook – all tactics, no strategy,” according to long-time Beijing-based lawyer James Zimmerman, who is also a former chairman of AmCham China.

“As with the first time around, I doubt if we’ll see a ‘phase two’ trade deal beneficial to American companies, workers, growers and consumers,” he added.

“What American companies need is true market access and a level playing field, and that takes thoughtful and methodical negotiations, and not hollow threats of tariffs and sanctions. And that applies equally to all our trading partners – the EU, Canada, Mexico, China, and so on.”

China, which has been facing rising trade barriers imposed by various countries including the US, is the most frequently subjected to trade remedy investigations, according to a report earlier this week from Shanghai-based legal-business oriented social networking service Intelligeast.

Since the establishment of the World Trade Organization in 1995, 7,843 trade remedy investigations have been initiated worldwide, with 2,494 launched against China, accounting for 31.8 per cent of the total.

China KOLs rent UN room, pay US$49,999 to attend Trump’s inauguration to build ‘elite persona’

https://www.scmp.com/news/people-culture/china-personalities/article/3288043/china-kols-rent-un-room-pay-us49999-attend-trumps-inauguration-build-elite-persona?utm_source=rss_feed

Some influencers in China have spent US$2,500 to rent a United Nations conference room and US$49,999 to attend Trump’s inauguration, all in an effort to cultivate an “elite persona”.

Shirley Lin, a 22-year-old Chinese student at New York University with 7.2 million followers on Douyin, captivates audiences by sharing insights into her college life and musical talents.

She has reportedly dined with Bill Gates and attended star-studded events alongside icons like Eileen Gu.

On November 2, Lin posted a video of her delivering a speech on “Youth Leadership” at the UN.

One commenter remarked: “Lin is gorgeous, fluent in English, and speaks at prestigious international organisations – truly the epitome of elite. What an enviable life!”

However, another commenter questioned the authenticity of her experiences, pointing out that speaking and photo opportunities at the UN can be “bought”.

The official UN website offers a one-hour guided tour of the UN headquarters in New York, allowing visitors to explore meeting rooms and learn about the UN’s work processes for US$26 per person.

Visitors can also attend “in-house briefings” at the UN on topics such as peacekeeping, human rights, and sustainable development goals, with prices starting at US$165 per session.

Mainland media outlet Vista Hydrogen Business reported that renting a conference room at the UN headquarters costs US$2,500 per day, enabling organisations to host events.

Lin’s video of her UN speech garnered over 2 million likes within a week.

One netizen analysed her elite persona: “While most people spend a lifetime striving for ordinariness, gimmicks like ‘dining with Bill Gates’ and ‘speaking at the UN’ position Lin as a symbol of success, feeding the public’s curiosity and desire for high achievement.”

An industry insider, Huang, stated that attending events like dining with Bill Gates is primarily about having money and connections.

As of this writing, Lin has not responded to the online criticism.

The latest trend in cultivating an “elite persona” in China involves attending Donald Trump’s inauguration in Washington next January.

A widely circulated poster on Xiaohongshu offers US$49,999 front-row seats with a personal photographer, and a travel agency has confirmed that they are already sold out.

On November 5, Xinxuan, a music influencer and medical graduate student at Peking University, shared her experience taking part as an intern in a simulated negotiation meeting organised by the UN and WHO in Geneva, focusing on the global health challenge of antibiotic resistance.

Many netizens praised her achievements and sought her advice on internship opportunities within international organisations.

The Post discovered that the UN offers unpaid internships for eligible university students. Lasting three to six months, these roles involve tasks such as social media management, project research, and video production.

Several Chinese agencies assist clients in securing UN internships for up to 34,800 yuan (US$4,800), providing services such as accommodation, visa support, and interview coaching.

However, the UN website clearly states that it does not charge any fees at any stage.

Several mainland media reports have also revealed that paid internships are an open secret in the finance and tech industries.

“It is very common for students to spend 20,000 to 50,000 yuan to secure internships at prestigious firms to enhance their resumes,” said a study-abroad consultant in China.

The pursuit of “elite personas” has sparked heated debates on mainland social media.

One online observer expressed concern: “UN staff work tirelessly to combat global poverty and support refugees, yet their efforts are exploited by some individuals using money to fabricate ‘elite personas’. It’s ironic!”

“On the bright side, regardless of these influencers’ true motives, they have increased the UN’s visibility, helping more people understand and support its work,” noted another.

A popular WeChat comment stated: “Instead of envying others, focus on your own hard work! Online ‘elite personas’ are like fairy tale princes and princesses – often fictional. True success does not need to be flaunted.”

China declares space milestone in launch of ‘self-driving’ radar satellites

https://www.scmp.com/news/china/science/article/3288158/china-declares-space-milestone-launch-self-driving-radar-satellites?utm_source=rss_feed

China has launched the world’s first “self-driving” satellites that can maintain or change their flight course without any help from the ground, according to their developer.

The two mapping satellites – Siwei Gaojing-2 03 and Gaojing-2 04 – blasted off on a Long March-2C carrier rocket from the Jiuquan Satellite Launch Centre in northwest China at 7.39am on Monday before entering their preset orbits.

The Shanghai Academy of Spaceflight Technology (SAST) – a subsidiary of China Aerospace Science and Technology Corp (CASC) – said the launch was a milestone in the development of China’s commercial space surveying and mapping.

The developer said the pair would usher in a new era of “self-driving” commercial satellites, with abilities that include automatic orbit return and fly-around.

“After in-orbit operation, they will achieve the world’s first autonomous and strict orbit return at the 100-metre [328-foot] level, and formation-coordinated fly-around at the sub-metre level,” SAST said, adding this could simplify in-orbit control and better guarantee safety.

The developer said the satellites – which are equipped with high-precision radar payloads and other advanced technologies – would provide “all-day, all-weather, high-resolution radar imagery” and “significantly improve the accuracy of surveying and mapping products”.

Once operational, the satellites will provide data for natural resource management, urban safety, emergency response and maritime affairs, according to SAST.

The high-resolution, high-quality radar images they produce would support China’s basic surveying and mapping updates, help monitor agricultural production and the environment and provide early warning of natural disasters, it said.

The Gaojing-2 03 and 04 satellites are an important part of China’s Siwei commercial remote sensing constellation project, which was approved by CASC in April 2022 and is expected to be fully established next year.

The project, comprising a network of at least 28 satellites, is designed to meet the needs of various industries – such as national land management, mapping and marine surveillance – for high-spatial and high-resolution data.

In April, a commercial optical satellite, Siwei Gaojing-3 01, which was also developed by SAST, was launched.

Unlike optical remote sensing satellites, which operate in the visible and near-infrared wavebands, Gaojing-2 03 and 04 are a type of synthetic aperture radar (SAR) satellite that uses microwave signals to create images by sending pulses of energy to Earth and measuring how long it takes for them to return.

Low-Earth orbit SAR satellites can penetrate clouds, fog and darkness to collect images day and night and are used by a number of countries to monitor earthquakes, floods, deforestation and oil spills, as well as for military surveillance.

In August last year, China launched the world’s first geosynchronous orbit SAR satellite, the Ludi Tance 4-01, giving China a permanent view of almost one-third of the Earth’s surface.

Chinese EV makers’ ‘do-or-die’ moment, Hyundai’s US$500 million investment: 7 EV reads

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We have put together stories from our coverage on electric and new energy vehicles from the past two weeks to help you stay informed. If you would like to see more of our reporting, please consider .

Unprofitable Chinese electric vehicle (EV) makers, ravaged by a discount war at home and higher tariffs abroad, are stepping up cost-cutting measures and new model launches as they strive to survive in the cutthroat market.

Malaysia has set its sights on becoming Southeast Asia’s hub for EV production, Prime Minister Anwar Ibrahim said as he welcomed a US$500 million investment by South Korean car giant Hyundai Motor to build a second assembly plant in the region.

Foreign carmakers are at risk of losing up to US$20 billion in profit annually in China, amid intensified competition with domestic producers and a market shift toward electric cars and smarter vehicles, UBS Investment Bank says.

China’s EV sector reached yet another milestone as annual production volume surpassed the 10-million-unit threshold amid mounting worries about overcapacity.

BYD is set to overtake perennial market leader Volkswagen as China’s biggest carmaker in 2024 after outselling the German company’s joint venture units in the first 10 months, as the growing popularity of battery-powered cars strengthens its market dominance.

Mainland Chinese tech giant Baidu has applied to launch autonomous vehicle (AV) trials at Hong Kong airport.

Chinese smartphone giant Xiaomi reported a 30.5 per cent jump in revenue for the third quarter on the back of a global smartphone market recovery and a strong push in EVs.

Security guards foil attempted bank robbery in southwestern China, man detained

https://www.scmp.com/news/china/politics/article/3288331/security-guards-foil-attempted-bank-robbery-southwestern-china-man-detained?utm_source=rss_feed

A rare bank robbery was thwarted last month in southwestern China when security guards tackled the suspect at the scene, according to an online media report published against the backdrop of a series of random killings in recent months.

Shanghai-based news outlet The Paper reported on Friday that staff at a Bank of China branch, in the small city of Guangan in Sichuan province, noticed that a man was about to “launch an illegal activity” and called the police.

A member of staff evacuated customers while security guards Zhang Houcheng and Wu Han from the Guangan Investment Group observed the suspect from a distance, in accordance with the emergency plan.

When the suspect was not expecting it, Zhang and Wu took him down without any casualties or property loss, according to the article, which said the incident took place on October 7.

The suspect, also surnamed Zhang, was detained by Linshui county police who praised the security guards for their actions, the report said. No other details were given and it is unknown if he was armed or what his alleged scheme entailed.

Bank robberies are not common in China. The last known case happened in November 2022, when Taian police in eastern China’s Shandong province announced that an armed suspect was holding a hostage at a bank he had tried to rob.

In that incident, after a stalemate that lasted an hour and included repeated warnings, the police shot the suspect dead and rescued the hostage.

This month, shortly after the Guangan bank robbery, three mass killings occurred within eight days of each other. But media tallies have identified dozens of incidents since the beginning of the year, which has also been marked by an economic slump.

On November 11, an SUV rammed into a crowd of people exercising in Zhuhai, southern China, killing 35 and injuring 43. At a vocational college in Wuxi, Jiangsu province, on November 16, a former student armed with a knife killed eight and wounded 17.

According to mainland media investigations, these are just the latest in a spate of stabbings and car attacks on crowds in parks, schools and shopping malls around the country.

Legal professionals have called for better mental health and social resources, while urging the Chinese authorities to delve into the deeper reasons that may be behind the attacks.

President Xi Jinping has also issued a rare instruction to local governments, demanding that they “learn the lesson” and resolve conflicts in a timely manner, as well as avoid the risks stemming from extreme cases.

Local authorities, prosecutors and police have responded to Xi’s intervention by promising to carry out sweeping investigations into any conflicts.

Police smash Korean-Chinese romance scam ring that stole US$92 million from 84 victims

https://www.scmp.com/news/asia/east-asia/article/3288315/police-smash-korean-chinese-romance-scam-ring-stole-us92-million-84-victims?utm_source=rss_feed

A joint Korean-Chinese crime syndicate has been arrested for swindling 122 billion won (US$92 million) from 84 individuals in an eight-month romance scam. The group impersonated Korean-heritage foreign women on social media to lure victims into fake cryptocurrency and gold investments.

The Busan Police Agency announced on Tuesday that 12 members, including a South Korean recruiter and Chinese manager, have been arrested and charged with fraud and operating a criminal organisation. Another eight members were charged without detention.

The syndicate recruited South Koreans in their 20s and 30s, relocating them to Cambodia and Laos to train them in scamming techniques.

Members targeted victims through social media, presenting themselves as Korean-heritage foreign women. After building trust over a week of conversations, they persuaded victims to invest in fake cryptocurrency or gold trading platforms, according to the police.

Victims were directed to fraudulent websites and coerced into investing amounts ranging from 1 million won to 20 billion won. When victims expressed doubt, the scammers played on emotional connections, asking, “Don’t you trust me?” If victims requested returns, the group demanded additional deposits for taxes and fees before disappearing with the funds.

Police reported that the victims, mostly men aged between 20 and 70, have collectively lost 122 billion won since January.

The investigation began in April after a victim reported the scam. Authorities have arrested 20 syndicate members and are pursuing six Chinese masterminds with Interpol notices. Bank account tracking and further investigations are ongoing.

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[Sport] 'No-one will win' - Canada, Mexico and China respond to Trump tariff threats

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Vietnam’s aircraft deal with US reflects closer ties – is China ‘not happy’?

https://www.scmp.com/week-asia/politics/article/3288250/vietnams-aircraft-deal-us-reflects-closer-ties-china-not-happy?utm_source=rss_feed

A recent weapons deal between Vietnam and the United States underscored the potential for their defence cooperation and coincided with the appearance of a Chinese vessel in the Southeast Asian country’s territorial waters.

Analysts say the deal is too small to deter China and is an attempt by Vietnam to “wean” itself off from Russian-made arms and equipment.

Last week, the US delivered the first five of 12 trainer aircraft to Vietnam in what has been described as its biggest arms shipment to the Southeast Asian country since the end of the Vietnam war nearly five decades ago.

The delivery of the T-6C trainer aircraft would strengthen Vietnam’s “self-reliant defence capabilities,” said the US embassy in Vietnam.

The remaining aircraft would be delivered next year and represented Washington’s “promise” to assist in Hanoi’s “air force modernisation efforts”, said the commander of Pacific Air Forces General Kevin Schneider, according to a Pacific Air Forces statement.

Alexander Vuving, a professor at the Asia-Pacific Centre for Security Studies in Hawaii, said the arms deal signified Hanoi’s plans to acquire other US planes in future.

“The increase in US-Vietnam military cooperation that this transfer signals is modest enough not to anger China, and this is exactly what Vietnam intended,” Vuving said, referring to the policy of balanced diplomacy practised by Hanoi.

While the deal was too small to significantly deter China, Vuving said Beijing’s deployment of a boat to the area near Phan Thiet Air Base, where the training aircraft would be stationed, was intended to send a signal to Hanoi and Washington.

“Beijing’s message is that it is not happy about the US-Vietnam military cooperation and will continue to monitor their relationship,” Vuving added.

On the same day of the handover of the aircraft, China’s Hai Feng 5103, a high-speed catamaran – a watercraft with two parallel hulls of equal size – arrived and remained within Vietnam’s territorial waters near Phan Thiet.

The vessel was still in the region over the weekend, according to the Gordian Knot Centre for National Security Innovation at Stanford University in a posting on X.

Zachary Abuza, a Southeast Asia expert and professor at the National War College in Washington, said the aircraft deal was a long-term investment to enable Vietnam to reduce its dependence on Russian equipment.

“The US trained the first two T6 pilots, who will now lead training in Vietnam,” Abuza said, noting that while many current Vietnamese pilots and technicians were Russian speakers trained by their Russian peers, the T6 programme would create a new group of English-speaking air force personnel in the country.

The first significant arms sale to Vietnam from the US since the end of the Vietnam war would also allow both sides to learn more about each other’s procurement system, Abuza added. “That’s very important. I can’t emphasise that point enough. Symbolism does matter in diplomacy.”

For decades, Vietnam has imported most of its weapons and related equipment from Russia but in recent years, it has tried to diversify its armed purchases. Last year, despite an estimated budget of over US$1 billion for arms imports, Vietnam did not place any new major order from Russia, according to defence think tank Stockholm International Peace Research Institute.

Olli Pekka Suorsa, an assistant professor at the UAE-based Rabdan Academy whose research focuses on Asian security and defence, said the deal would help modernise the Vietnamese air force’s training, noting that Vietnam was the second country in Southeast Asia to receive the aircraft after Thailand.

“As part of bilateral defence diplomacy efforts between Washington and Hanoi, the aircraft sale can open opportunities for pilot and maintenance personnel training in the US,” Suorsa said, adding that this could allow Vietnamese personnel to acquire knowledge of Western and American air force training.

Apart from creating new links between the two countries’ air forces, the training could also better prepare Vietnam to acquire future American combat aircraft, Suorsa added.

In July, the US and Vietnam discussed the sale to Hanoi of Lockheed Martin C-130 Hercules military transport planes, which could carry soldiers, military equipment and other supplies.

Hai Hong Nguyen, senior lecturer in politics and international relations at VinUniversity in Hanoi, said diversifying Vietnam’s arms supplies was necessary given Russia’s ongoing war with Ukraine.

“[Vietnam needs] reliable and sustainable sources of weapons supply,” and had turned to Washington due to the increased strategic trust between the two countries as both sides upgraded ties last year to a comprehensive strategic partnership, he said.

Nguyen added that Hai Feng’s presence in the country’s waters buttressed its people’s belief that “China’s words and agreements with Vietnam differ from their actions”.

In September, Vietnam’s then President To Lam met his US counterpart Joe Biden, on the sidelines of the United Nations General Assembly in New York. On November 11, he spoke to Donald Trump to congratulate the president-elect on winning the US election.

While military and diplomatic ties are kept on an even keel, the possibility of tariffs under the incoming administration in Washington is a constant worry for Vietnam as its two-way trade with the US continues to rise.

During Trump’s final year in office under his first administration, he labelled Vietnam as the “worst abuser” of US trade.

Abuza said Trump might threaten to overturn the current administration’s decision to not label Vietnam a “currency manipulator”, adding that no country in Southeast Asia had to face more risk arising from the Trump presidency than Vietnam.

This was due to Vietnam having the highest exports to GDP ratio in the region where exports to the US account for 21 per cent of its economy, so any tariff hike imposed by the Trump administration would hit Vietnam “very hard”, Abuza added.

In the run-up to the November 5 election, Trump said he would impose tariffs of 10 to 20 per cent on virtually all imports and up to 60 per cent on goods from China.

“The problem for Hanoi is that their imports of US goods have remained flat, which will get them in the incoming administration’s crosshairs,” Abuza said.

Last year, Vietnam’s imports from the US totalled US$9.8 billion, while its exports to the world’s biggest economy were over 12 times more at US$118.9 billion, resulting in a massive trade surplus in Hanoi’s favour. Vietnam enjoyed a trade surplus of US$22.4 billion with the US in the first quarter of this year.

To show its “goodwill” to Washington, Vietnam could buy a significant amount of military equipment from the US, Vuving said. “Hanoi believes that Trump tends to see relationships in terms of reciprocity, and knows how to make him happy.”

Agreeing, Nguyen said more weapons sales to Vietnam would be expected in the next four years under the Trump administration.

China’s central bank to cut reserve ratio again to add liquidity, aid growth: analysts

https://www.scmp.com/economy/policy/article/3288189/chinas-central-bank-cut-reserve-ratio-again-add-liquidity-aid-growth-analysts?utm_source=rss_feed

China’s central bank is expected to further cut the amount of cash that commercial banks must hold as reserve by another half a percentage point in December to inject more liquidity into the market and also shore up economic growth, analysts said.

The window to reduce the reserve requirement ratio (RRR) is open because the government has stepped up the issuance of bonds, combined with the seasonal rise of liquidity and maturity of the medium-term lending facility, Citic Securities economists said on Monday.

“The central bank may also use various tools, such as buy-back reverse repurchase agreements and government bond purchases, to stabilise market liquidity,” they said.

If implemented, it would mark the third cut this year, following reductions in February and September, when half a percentage point cut each time injected 1 trillion yuan (US$138 billion) each into the market.

Speaking at the Financial Street Forum in late October, People’s Bank of China governor Pan Gongsheng hinted at a cut of the ratio by between a quarter and half a percentage point before the end of the year “depending on market liquidity conditions”.

The average RRR for Chinese banks stood at 6.6 per cent as of September 27, with larger institutions required to hold 8 per cent of their deposits as reserves, while medium-sized banks must hold 6 per cent and small banks must hold 5 per cent, according to PBOC.

The prediction of a further RRR cut came as the world’s second-largest economy has shown signs of a mixed recovery on the back of the stimulus package released since late September.

As part of the package, China’s central bank unleashed a series of monetary easing measures to inject liquidity into the financial system, stimulate lending and boost economic growth.

The measures also included multiple interest rate cuts and the introduction of a new open market outright reverse repo operations facility.

Following the rounds of stimulus, China’s retail sales in October reached an eight-month high, while overall fixed-asset investment kept steadily increasing, bolstering optimism that China can reach its annual gross domestic product target of “around 5 per cent”.

But despite the uptick in economic activity, analysts at HSBC had cautioned that external challenges could dampen the recovery, and urged policymakers to implement “decisive support” to sustain this momentum.

Washington adds nuclear-powered submarine to Guam outpost as China rivalry grows

https://www.scmp.com/news/china/military/article/3288281/washington-adds-nuclear-powered-submarine-guam-outpost-china-rivalry-grows?utm_source=rss_feed

The US has deployed one of its newest nuclear-powered, fast-attack submarines to Guam – the first vessel of its class to be based at the strategic military outpost – in a strengthening of its power projection in the face of growing rivalry with China.

The Virginia-class USS Minnesota, based in Hawaii since 2022, arrived at its new home port on Tuesday in what the US Navy described as its “strategic laydown plan for naval forces in the Indo-Pacific region”.

It joins Submarine Squadron 15’s fleet of Los Angeles-class fast-attack submarines, all of which were commissioned in the early 1990s.

According to the squadron’s commander Neil Steinhagen, the USS Minnesota is an “exceptional addition” to the forward-deployed submarine force in Guam.

“Its presence will enhance our operational capabilities and further strengthen deterrence efforts throughout the Indo-Pacific,” he said in a US Navy statement issued on Tuesday.

The USS Minnesota, commissioned in 2013, is the 10th submarine in the US Navy’s Virginia-class fleet that was designed to replace the ageing Los Angeles-class vessels.

With a crew of around 140, the USS Minnesota is capable of supporting various missions, including anti-submarine and anti-surface ship warfare, as well as strike operations, along with intelligence, surveillance, and reconnaissance.

“The security environment in the Indo-Pacific requires that the US Navy stations the most capable units forward,” the navy statement said.

“This posture allows flexibility for maritime and joint force operations, with forward-deployed units ready to rapidly respond to deter aggression and promote a peaceful and prosperous Indo-Pacific region.”

The USS Minnesota’s deployment is part of an increasing US reliance on submarines, which officials and military experts say have been effective in maintaining strategic flexibility in potential flashpoints like Taiwan and the South China Sea.

The vessels have also played a critical deterrence role against Chinese expansion in the Indo-Pacific region, according to analysts.

The US has been shoring up its military presence in Guam – its westernmost Pacific island territory and a critical outpost for power projection in the Indo-Pacific, a region that has become a major priority in the Pentagon’s efforts to counter China.

In 2021, Washington committed about US$11 billion to fund military infrastructure projects on the island in a construction programme that is projected to continue throughout 2026, including Guam’s first Marines base since 1952.

Once completed, the partially opened base will house 5,000 Marines and is expected to serve as a strategic training hub. The Pentagon has also repeatedly stressed the important of upgrading airbases and other facilities on the island.

Guam is just 2,900km (1,800 miles) from China’s east coast and within striking distance of key Chinese military assets, including those in the South China Sea, and is regarded by the US as crucial in any potential conflict with its Asian rival.

During his visit to Guam last month, Tom Mancinelli, the US Navy’s acting undersecretary, reaffirmed Washington’s commitment to enhancing Guam’s defence capability.

“Guam is part of the US homeland. It is physically closer to Beijing than Hawaii,” he said.

“Our efforts here are designed to deter regional aggression and safeguard the interests of the United States as well as our allies and partners. If deterrence fails, we will fight from Guam, and we will fight for Guam.”

Dutch-adopted man revisits China family, tells adoptive father ‘You’ll always be my dad’

https://www.scmp.com/news/people-culture/trending-china/article/3287997/dutch-adopted-man-revisits-china-family-tells-adoptive-father-youll-always-be-my-dad?utm_source=rss_feed

Eight months after the poignant reunion of a PhD graduate with his long-lost Chinese birth family – following his adoption to the Netherlands three decades ago – he brought his Dutch father to China to reconnect with his birth mother, envisioning a future filled with love and care from both families.

In early October, Gouming Martens, originally named Gao Yang, revisited his birth mother Wen Xurong’s home in Miyi county in southwestern China’s Sichuan province, accompanied by his adoptive father, Jozef Martens.

They received a warm welcome from Wen and her husband, whom she married in 2010 and with whom she has a teenage daughter.

Wen’s husband prepared local dishes for their guests, while Wen served food to her son and his adoptive father, a traditional gesture of hospitality in Chinese culture.

Recalling the heart-wrenching story of losing Gao in 1994 during an interview with media outlet ifeng.com, Wen tearfully stated: “My destiny was beyond my control.”

Wen, Gao Yang, and his father Gao Xianjun had travelled from eastern China’s Jiangsu province to Sichuan to visit her ailing mother. During the process of buying train tickets, she lost sight of her husband and son.

She shared that she searched for them at the railway station for three days before being sent to her hometown by railway staff.

Being illiterate, she felt unable to travel long distances alone and feared her husband’s “bad temper”, so she waited for him and her son to find her in her hometown.

Unbeknown to her, Gao senior had also lost their son at the railway station.

While searching for Wen, Gao senior was startled by a group of hooligans, which caused him to lose track of Gao Yang.

Gao Yang’s uncle later informed him that his father had searched for them at the Chengdu railway station for two years until he ran out of money. He then walked for six months to return home to Jiangsu, spending the rest of his life in sorrow and ill health before passing away in 2009.

Gao Yang was adopted by the Dutch couple Jozef and Maria Martens from an orphanage in 1996.

At 33, Gao recalled a happy childhood before the age of three and resolved to search for his roots at the age of 13.

Since then, he has visited China multiple times and relearned the Chinese language he had forgotten.

Throughout his years studying linguistics at Leiden University in the Netherlands and later at McGill University in Canada as a PhD candidate, Gao maintained contact with Baobeihuijia, a Chinese volunteer organisation dedicated to helping individuals find lost family members.

After a 12-year search for his birth parents, volunteers informed Gao and Wen last November that their DNA matched.

Tragically, Gao’s adoptive mother, who had supported his search, passed away from illness before receiving this joyful news.

Wen, who had suffered from schizophrenia following the loss of her husband and son, appeared much more aware during this revisit than at their first meeting in February.

Her husband noted that her mood and health had significantly improved since their reunion.

Gao spoke to his mother in fluent Mandarin, encouraging her to “forget the past and look forward.” He held her hand closely, expressing: “I feel warm.”

His adoptive father expressed happiness over the reunion but emphasised: “Our relationship will never change. You will always be my son.”

Gao affirmed that his adoptive father “will always be his father”.

Having worked in Canada as an AI speech recognition expert, he is now seeking a job in Europe to be closer to and care for his father, who is now 72.

In a Douyin video posted by a volunteer based in the Netherlands, his adoptive father mentioned considering spending winters in Sichuan, where the climate is more pleasant.

Gao stated he plans to return to China at least once a year to visit his family in Sichuan and Jiangsu.

He has also become a Baobeihuijia volunteer, assisting other Dutch individuals of Chinese descent in their search for roots.

“He was unfortunate to have lost his birth parents but incredibly fortunate to have two families now. His birth mother, stepfather, and adoptive father all seem to be very kind people,” commented one YouTube user.

“He became a well-educated young man thanks to his adoptive parents. I hope he can bring care and happiness to both his adoptive father and birth mother in the future,” another user remarked on Douyin.

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As China looks to rebuild bridges with Japan, will ‘better relations’ last beyond Trump?

https://www.scmp.com/week-asia/politics/article/3288244/china-looks-rebuild-bridges-japan-will-better-relations-last-beyond-trump?utm_source=rss_feed

China has made a number of conciliatory overtures to Japan recently, including promises to ease military tensions and remove controversial installations, signalling a strategic pivot by Beijing to counter anticipated pressure from US president-elect Donald Trump’s next administration.

“[Chinese President Xi Jinping] wants better relations with Japan to act as a deterrent against Tokyo unilaterally siding with Washington on every decision after January,” Go Ito, a professor of international relations at Tokyo’s Meiji University, told This Week in Asia.

However, analysts warn that any warming of ties between Beijing and Tokyo is likely a short-term strategy aimed at navigating Trump’s second term, with a return to a more confrontational posture expected in the future.

Xi hinted at Beijing’s desire for better relations with Tokyo in talks with Prime Minister Shigeru Ishiba on the sidelines of the Asia-Pacific Economic Cooperation summit in the Peruvian capital of Lima on November 15.

China’s leader expressed a “strong commitment” to advancing people-to-people exchanges between the two countries, the Cabinet Office reported. One week later, the Chinese Ministry of Foreign Affairs announced the resumption of short-term visa exemptions for Japanese nationals.

The exemptions were suspended in early 2020, due to the coronavirus pandemic, but were not reintroduced even after the health crisis had largely passed.

According to a Kyodo report on Saturday, Japanese diplomatic sources said China had agreed to remove a weather and current monitoring buoy that was moored inside Japan’s exclusive economic zone close to the Diaoyu Islands in the East China Sea, which Japan controls and refers to as the Senkaku Islands.

The buoy was discovered within Japanese waters in July last year and Tokyo has repeatedly demanded that it be removed, to no avail. Japan believes the data the equipment is gathering has military applications. It is not clear whether China intends to remove the buoy entirely or just move it into Chinese waters.

Beijing has also said it will take measures to ensure that military aircraft do not enter Japanese airspace after a reconnaissance plane briefly entered Japanese air territory on August 26. Tokyo responded angrily to the violation by the Y-9 aircraft over the Danjo Islands, off Nagasaki prefecture, as it was perceived as a hostile act.

China has since said the violation was unintentional and caused by wind turbulence, and promised to take steps to ensure a similar breach of Japanese airspace does not happen again.

There has also been a flurry of agreements between the two capitals, including on a bilateral defence hotline that was introduced in 2023 to avoid clashes at sea and in the air, the promotion of defence dialogue and even the resumption of exchanges between Japanese and Chinese military officers.

More significantly, Japanese sources told local media on Saturday that Foreign Minister Takeshi Iwaya would visit Beijing in late December for talks with his Chinese counterpart, Wang Yi, as a stepping stone to additional high-level exchanges.

Stephen Nagy, a professor of international relations at Tokyo’s International Christian University, said while the developments appeared positive, they were part of a broader pattern by Beijing to improve relations with other countries as it braced itself for the fallout from a confrontational Washington in the months ahead.

“China wants to de-escalate its positions and create better relations with nations that can be seen as core US allies so that it will be more difficult for them to stand by everything Trump wants in his second administration,” he told This Week in Asia, pointing to the withdrawal of some Chinese forces from the Himalayan frontier in a move to ease India’s territorial concerns as another example of the same tactic.

Nagy said he fully expected China to make similar concessions on trade, security or other areas of shared concern to South Korea.

“We can see this pattern of Chinese behaviour as an oscillation between periods in which it flexes and then pulls back, depending on how serious the pressure from Washington is,” he said.

Ito agreed that there was “a little more warmth” between Japan and China, but believed that Trump’s victory in the US presidential election earlier this month had effectively forced Beijing’s hand.

“And it is not just Japan that they are reaching out to, as we see similar efforts to build closer ties with Australia, the Philippines and elsewhere, all of which are strong US allies,” he said.

Ito added that he personally welcomed the warming of bilateral ties, after the arrests of a number of Japanese businesspeople and academics on accusations of espionage had raised questions among people invited to attend events in China. He is scheduled to travel to the Chinese city of Dalian later this month for a series of lectures.

“Xi is also closely watching how the internal politics plays out within the ruling Liberal Democratic Party now that Ishiba is prime minister,” Ito said.

Previous governments were dominated by more hawkish factions that were hostile to China, although Ishiba is seen as “more of a disciple of Kakuei Tanaka”, the former prime minister who in 1972 travelled to Beijing to normalise relations with China, he added.

While improved bilateral relations might ease tensions in the Indo-Pacific in the short term, analysts agree the policies that Trump is advocating will inevitably see the US lose diplomatic and trade ground to China by the end of his four-year term, leaving the next administration needing to rebuild ties and catch up once again.

Nagy said Beijing acting to ease tensions was likely to be a temporary manoeuvre.

“I do not see a fundamental shift in China’s ambitions or behaviour over the long term, and we will, sooner or later, return to Beijing pressuring Taiwan and the Philippines, claiming the Senkaku Islands, continuing to support Russia in its war in Ukraine and so on,” he said.

Hong Kong’s AI efforts connect China and rest of the world amid geopolitical tensions

https://www.scmp.com/tech/tech-war/article/3288213/hong-kongs-ai-efforts-connect-china-and-rest-world-amid-geopolitical-tensions?utm_source=rss_feed

Hong Kong plays a major role in the artificial intelligence (AI) industry in terms of connecting mainland China and the rest of the world amid geopolitical headwinds, according to a senior executive at the Hong Kong Productivity Council (HKPC).

“At the moment, we are artificially creating a barrier between the US and mainland China, and that will stifle the development of technology,” Lawrence Cheung Chi-chong, HKPC’s chief technology officer, said in an interview on the sidelines of an AI conference organised by the council on Tuesday.

“A lot of times for us, we don’t know whether we should reach out to our Western counterparts to work with them,” Cheung told the South China Morning Post. “Because even if they have interest to work with us … they may not have the freedom to [do so]. And that is sad in a way.”

“So from a scientist’s point of view, it has been difficult over the past few years, particularly in the AI area,” he said.

Cheung’s comments reflect how Hong Kong, in recent years, has been caught in the crossfire of trade tensions and escalating tech rivalry between the US and China.

Washington in August last year announced plans to restrict US firms from investing in Chinese companies, including those in Hong Kong and Macau, in three areas: semiconductors, quantum computing technologies and certain AI systems.

Hong Kong Chief Executive John Lee Ka-chiu last month said that Washington’s plan to clamp down on outbound investments in China would also harm US businesses and residents, citing the US$271.5 billion the country had earned through trade with the city over the past decade.

Lee warned that the US will ultimately “reap what it sows”.

Nvidia, the world’s leading supplier of AI processors, has already been barred by Washington from selling its most advanced chips to China, which has left many domestic tech firms scrambling to find alternative products.

From July 9, ChatGPT creator OpenAI had developers on the mainland and in Hong Kong blocked from accessing its services.

Still, Cheung pointed out that Hong Kong remains an important launching pad for international AI firms looking to access the Chinese market and for mainland companies that aim to expand overseas.

HKPC – a statutory body under Hong Kong’s Innovation, Technology and Industry Bureau – has also been pushing for AI to be adopted across local industries such as manufacturing and logistics, according to Cheung.

He said HKPC is currently developing an AI model named Industrial GPT, which aims to incorporate “sufficient industrial data”, making it useful for small- to medium-sized manufacturers in Hong Kong. Industrial GPT, which is expected to be ready in one to two years, will be trained at the AI Supercomputing Centre at Cyberport.

“At the moment, I think we will be using both [Chinese and Western computing solutions to build Industrial GPT],” Cheung said. “But we’ll see how the current geopolitical situation will develop and pan out.”

The Centre for Artificial Intelligence and Robotics, a Hong Kong-based AI research centre under the Chinese Academy of Sciences, said last week that it has advanced the development of its medical AI models by using Huawei Technologies’ Ascend processors, as access to Nvidia’s high-end chips remains restricted.

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Antony Blinken urges G7 countries to maintain unity in face of China risks

https://www.scmp.com/news/china/article/3288268/antony-blinken-urges-g7-countries-maintain-unity-face-china-risks?utm_source=rss_feed

The G7 major industrialised nations are increasingly aligned on the “economic and security risk” posed by China and the policies it is pursuing, US Secretary of State Antony Blinken said on Tuesday at the conclusion of a foreign ministers meeting.

In comments at his last meeting as Washington’s top diplomat, Blinken praised the group’s accomplishments and called for a continuation of the partners’ strategy, which is expected to weaken under president-elect Donald Trump, who takes office on January 20.

“The bottom line is this: We are much stronger, we’re much more effective, when we’re acting together, not alone,” Blinken said, according to a transcript from Fiuggi, Italy, where the meeting was held. “And just to cite the obvious example in the economic area when we’re dealing with policies of concern by China, any of our countries acting alone compared to when we’re acting together simply cannot be as effective.”

The meeting focused heavily on the wars in the Middle East – where the outline of a ceasefire between Israel and Lebanon’s Hezbollah has emerged – and Ukraine, including Russia’s recent use of North Korean troops.

“We spent a lot of time on that,” Blinken said. “But also on China’s ongoing support for Russia’s defence industrial base – all of which is allowing Russia to continue the aggression against Ukraine, both of which are reminders that European and Indo-Pacific security are joined.”

But Blinken said it was also crucial to work with China where interests converged. And he called on Beijing to intercede with Russia and North Korea in a bid to bring a resolution to the war, which has surpassed 1,000 days.

“What’s essential here is this: China has an important role to play in using its influence – with … North Korea, as well as with Russia – to cease these activities,” he said, adding that Beijing had a strong incentive as well. If Russian nuclear technology ends up greatly increasing Pyongyang’s own nuclear capability, it could spark a nuclear arms race in the region and a stronger US presence, he said.

“These are undoubtedly steps that, while not directed at China, China will not like,” he said. “And as a permanent member of the United Nations Security Council, we, I think, would all look to China to use its influence to try to bring this to an end.”

In their final communique, the foreign ministers threw strong support behind an immediate ceasefire between Israel and Hezbollah.

They also gave a nod to China’s huge role in global trade.

“We are not trying to harm China or thwart its economic development; indeed a growing China that plays by international rules and norms would be of global interest,” the communique said. “However, we express our concerns about China’s non-market policies and practices that are leading to harmful overcapacity and market distortions, undermining our workers, industries and economic resilience and security.”

The document said the group was not decoupling or turning inward – without any mention of the imminent Trump transition – but rather de-risking, diversifying supply chains and building resilience to counter economic coercion.

It also called on Beijing to address the human rights situation in Hong Kong, Tibet and Xinjiang, avoid actions that undermine democratic institutions abroad and avoid imposing export control measures, particularly on critical minerals, that could lead to “significant supply chain disruptions”.

It also called for peace and stability in the Taiwan Strait and East and South China Seas, opposed any unilateral change in the status quo, expressed its continuing support for the one-China policy and “reiterate our opposition to China’s militarisation and coercive and intimidation activities in the South China Sea”.

US President Joe Biden’s administration has worked hard to show that Europe and Indo-Pacific issues are increasingly interrelated, including naval deployments in East Asia by France, Germany and the Netherlands, efforts that are not appreciated in Beijing. China is wary that a Nato-like collective security organisation could eventually form in the Indo-Pacific.

But Blinken said the logic of a collective response to China’s aggressiveness was strong. When the US tries to act alone, he said, it represents around one-fifth of global GDP. But when it works with its G7 partners – Canada, France, Germany, Italy, Japan and the UK – it is close to 50 per cent.

Over the past four years, the G7 has become increasingly of one mind in its approach toward China, Blinken said. This includes the group’s response to overcapacity, unfair trade practices and economic coercion as well as its collective efforts to control sensitive Western exports, screen investments, increase strategic mineral supplies and help build “sustainable infrastructure” around the world.

“As we seek constructive and stable relations with China, we recognise the importance of direct and candid engagement to express concerns and manage differences,” the communique said, adding: “We reaffirm our readiness to cooperate with China to address global challenges.”

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Electric vehicle deal with China is not close, top EU trade official says

https://www.scmp.com/news/china/article/3288266/electric-vehicle-deal-china-not-close-top-eu-trade-official-says?utm_source=rss_feed

The European Union and China are not close to finalising a deal that would end their long-running electric vehicle dispute, according to a senior EU official, who called reports suggesting otherwise “confusing”.

“I think there have been some quite confusing reports about the imminent deal on battery electric vehicles,” said Sabine Weyand, the EU’s director general for trade, said in Brussels on Tuesday.

“We have had 50 hours of discussions with our Chinese counterparts. They were constructive, but they have not led to an agreement on price undertakings. And there are structural issues that remain unresolved,” she said.

The dispute concerns an anti-subsidy investigation conducted over the course of a year by the European Commission. The inquiry found that Beijing had distributed substantial state subsidies across China’s electric vehicle sector and led to the EU imposing countervailing duties on EV imports from China at the end of October.

The commission argues that the subsidies have assisted in China’s enormous growth in the sector and fears that if allowed to continue unfettered, the underpriced imports will harm the sales of Europe’s own EV industry.

The tariffs, which range from 7 per cent for Tesla to a top end of 35.3 per cent for state-owned SAIC, have become a huge bone of contention in the EU-China relationship.

Some EU member states – including Germany, Sweden and Spain – have urged the commission to negotiate a settlement which would make some tariff reductions in exchange for a commitment from Chinese companies to set a minimum price on EVs sold in the EU.

The trade dispute has spread to other sectors too, with Beijing retaliating by launching anti-dumping probes against EU brandy, dairy and pork shipments.

Last month, it imposed provisional anti-dumping duties on EU brandy products, mostly constituting French cognac – broadly seen as a response to boisterous Parisian support for the EV tariffs.

On Monday, the EU challenged China’s brandy gambit by filing a complaint at the World Trade Organization.

Multiple reports in recent weeks have suggested that a deal to end the dispute was close. Last weekend, German MEP Bernd Lange – the head of the European Parliament’s trade committee – suggested that one was imminent.

“We are close to an agreement: China could commit to offering e-cars in the EU at a minimum price,” Lange told German broadcaster n-tv.

“This would eliminate the distortion of competition through unfair subsidies, which is why the tariffs were originally introduced.”

A week earlier, a social media site affiliated with the Chinese state broadcaster CCTV insisted that the sides had reached a “technical consensus” on important details of pricing.

The stories have caused automotive stocks to rise on the hope of a deal that would eliminate the tariffs, but – as Weyand suggested on Tuesday – are far from being true.

Beijing continues to protest against the tariffs – which are also applied to European manufacturers making cars in China – at every juncture.

“It is hoped that Europe and China will resolve the issue of electric vehicles through dialogue and negotiation as soon as possible, and the German side is willing to make active efforts in this regard,” Chinese President Xi Jinping told German Chancellor Olaf Scholz during a meeting on the sidelines of the Group of 20 summit in Brazil last week.

Weyand accused Beijing, through its aggressive lobbying, of trying to stir up dissent among the bloc’s capitals. She noted that there had been less protest from Beijing when the United States imposed a 100 per cent tariff on EV imports.

“China knows exactly what we are doing. They react the way they seem appropriate for their own domestic debate, but also with a view to creating divisions inside the EU,” she said in response to a question about whether China had been kept informed over the duration of the investigation.