• Could Trump’s return mark the start of a new race with China over drones for the military?
• China slams Calvin Klein parent firm, ‘Crimson Skyblade’ unveiled: SCMP daily highlights
• China’s top political adviser, Wang Huning, reaffirms support for private economy
• Beijing and Manila promise further South China Sea talks despite row over ‘monster ship’
• Biden strengthens US cyber defenses against Russia and China threats
• US executive order targets China, other alleged cyberattackers days before Joe Biden exits
• Apple trails Huawei, Vivo in China smartphone market in 2024, iPhone leads fourth quarter
• China’s yuan on the rise in oil trade, but petrodollar here to stay: report
• Could Trump finally call off the cold war with China?
• China’s local governments raise minimum wages to boost consumption
• China shop becomes favourite for hundreds of students who flock there to watch TV for free
• China accuses PVH Group of ‘inappropriate conduct’ on Xinjiang matters
• For Europe, China looms as 2025 economic threat, analysts say amid overcapacity concerns
• China’s Xinjiang hosts foreign university students to debunk Western narratives
• Tech war: US adds Chinese AI unicorn Zhipu to trade blacklist before Biden’s exit
• Chinese investment bank CICC cleared to operate in Dubai financial centre
• China retail giant bans staff from engaging in domestic violence, sparks privacy concerns
• Marco Rubio, US secretary of state nominee, echoes Trump’s Panama Canal China concern
• Space version of China’s NearLink wireless module ‘cuts latency to microseconds’
• China unveils ‘Crimson Skyblade’ in nuclear fusion quest for unlimited clean energy
• CIA director nominee vows to increase focus on China and emerging technologies
• If US shores up defence against China shipbuilding threat, what could really happen?

Could Trump’s return mark the start of a new race with China over drones for the military?

https://www.scmp.com/news/china/military/article/3295040/could-trumps-return-mark-start-new-race-china-over-drones-military?utm_source=rss_feed

The second Donald Trump administration is expected to spur increased competition with China to develop and produce dual-use drones, which have proved a low-cost but effective weapon on the modern battlefield.

Drones could be a central plank of the president-elect’s “America first” agenda, but some observers have said that US commercial drones would be too expensive to compete with those made in China.

Others have said further trade restrictions would have a limited impact on China’s dominance in the industry despite Trump’s promise to jack up tariffs on Chinese goods.

The use of drones designed to capture wide-view photos and footage with a first-person view has become widespread among rescue services and mappers as well as ordinary members of the public. However, they also have a military use and have featured extensively on battlefields in the Middle East and Ukraine.

The US military sees drones as playing a key role in any conflict in the Taiwan Strait and has warned it is planning to create an “unmanned hellscape” using thousands of the devices if mainland Chinese forces attack the island.

Beijing views Taiwan as part of China and has never renounced the use of force to reunite it with the mainland. The United States, in common with most countries, does not recognise Taiwan as an independent state but opposes any attempt to take it by force and is legally bound to supply the island with weapons to defend itself.

Although the US has traditionally had an edge over China in the production of military drones, it is lagging behind in building a robust, self-sufficient supply chain for dual-use drones – something that could hamper its ability to adapt the technology to meet its needs in the event of conflict.

“The drone supply chain is a critically important issue, including for American security and defence,” said Kelly Grieco, a senior fellow at Washington-based think tank Stimson Centre, citing the need to be able to “produce these drones at scale”.

During his first term in office, Trump focused on restricting government use of Chinese drones on security grounds – triggering a tit-for-tat series of measures and countermeasures.

This time around, Grieco said she expected Trump would increase his efforts “to promote US domestic manufacturing of drones and drone components”.

The US Department of Commerce’s Bureau of Industry and Security is considering new rules that would ban or restrict Chinese drones on national security grounds and has started a public consultation on the measures, which will run until early March.

The department warned that threats from China and Russia “may offer our adversaries the ability to remotely access and manipulate these devices, exposing sensitive US data”.

Trump has vowed to impose “an additional 10 per cent tariff above any additional tariffs” on imports from China and has previously threatened tariffs of up to 60 per cent on all Chinese goods.

Both Beijing and Washington have increased support for their domestic drone industries and stepped up drone technology transfers to the military in recent years as part of their wider contest for technological leadership.

But their increasing military role has heightened concerns about the ability of the manufacturers to access and collect data remotely.

Yue Gang, a military analyst and retired People’s Liberation Army colonel, predicted the incoming Trump administration would continue the “drone rivalry” that began during his previous term in office.

However he said it would be “very difficult for the US to contain China” in this area, citing its “cost advantage and stable supply chain”.

Yue said many US drones relied on Chinese parts, adding: “As a comprehensive supply chain takes decades to develop … it would hardly be possible for [the US] to realise this in a short period of time.”

China’s industrial policy has described the drone industry as being of strategic importance, while defence policy directives have also highlighted the sector’s importance for the military.

Washington has been working to reduce reliance on Chinese drones for more than a decade and Congress banned the Pentagon from buying them in 2019.

The same year saw the imposition of the first tariffs on Chinese drones, with the rate reaching 25 per cent in September of that year.

Commercial Chinese drones currently account for at least 75 per cent of the US domestic market, according to the Department of Commerce, and major manufacturers such as DJI, the global market leader, have blamed the tariffs for price rises in America.

In 2020 the Commerce Department added several drone manufacturers, including DJI, to the government’s export control list, citing their support for the Chinese military and involvement in alleged human rights abuses in Xinjiang.

Meanwhile, the US government has been trying to source more drones from domestic operators, as well suppliers in places such as Japan and Taiwan.

It also set up the Blue UAS project in 2020 to vet companies supplying commercial drones and components to the Pentagon.

But Grieco warned that “US domestic component suppliers are quite limited, particularly compared to China … [and] will require investments in domestic manufacturing capabilities and supply chain chains to reduce dependency on foreign components”.

She said Ukraine’s armed forces had reportedly found US-made commercial drones to be “clunky, glitchy, and overpriced for the capabilities they offer”.

Grieco said it would be difficult for American firms making small dual-use drones to compete against Chinese manufacturers, saying: “They have the advantage of scale – Chinese manufacturers produce and sell a lot of them, which brings down the price point.” She also pointed to reports that companies such as DJI had received government funding.

“Drone production will undoubtedly be a key battleground in US-China competition [during the next administration],” according to Kateryna Bondar, a fellow at the Centre for Strategic and International Studies.

She said the main areas of this competition would be the ability to mass produce drones, the development of weapons that could operate autonomously to “provide a significant battlefield advantage” and improving cost effectiveness.

“Whichever side can produce high-quality drones at a lower price will be able to procure more while conserving resources,” she said.

Drones have been used extensively by both sides in the Ukraine war, with Kyiv relying on FPV, or first-person-view drones, for strikes, reconnaissance and intelligence gathering.

It has also sourced a large number of off-the-shelf Chinese drones and electronic parts – such as batteries, radio modules and flight control systems – to build its own drones.

However, direct shipments from China to Russia reached US$14.5 million in 2023, dwarfing the US$200,000 figure for Ukraine in the same period, according to the Centre for Strategic and International Studies.

“Evidence suggests that China supplies Russia with critical components, particularly for drone production, in exchange for operational insights and battlefield data. This exchange enables China to enhance its own military capabilities by learning from Russia’s combat experiences,” Bondar said.

Beijing has repeatedly denied accusations that it has supplied weapons to both sides of the war.

China has been tightening its own export restrictions on drones and components with potential military uses, with Beijing saying it opposes “civilian drones being used for non-peaceful means”.

It has also criticised the “imposition of illegal sanctions on Chinese companies and individuals by certain countries” using the “excuse” that they produce weapons-capable drones.

In recent months, the US and European Union have sanctioned a number of Chinese companies and individuals for allegedly supporting Russia’s war effort, some of whom are accused of helping Moscow acquire drone components.

China has also sanctioned US drone companies, including leading manufacturer Skydio, over arms sales to Taiwan.

However, Yue said Ukrainian forces had been giving Chinese drone makers feedback about how the products’ performance on the battlefield – and this information would help the PLA “set adequate technical standards for drone use based on the feedback received by the firms”.

Despite Beijing’s restrictions on exports to Ukraine and Russia, “both sides were still able to acquire [drone] components and assemble them for their own use”, according to Fu Qianshao, a retired PLA Air Force equipment specialist.

“Against such a backdrop, I’m afraid a ban by the US would not affect [Chinese firms’] global presence but might even expand our market share [in components],” he said.

“Regular [US] citizens might also oppose the ban as quite some of them are using DJI or other Chinese drones, and a ban would make after-sales service and repair pretty challenging.”

Fu said that while the US was capable of developing a civilian drone supply chain, “the cost would be too high for them”.

He added that previous tariffs had failed to reduce US demand for Chinese civilian drones and they had “caused more losses to the US … as American consumers have to pay more for the same drones than in other countries”.

China slams Calvin Klein parent firm, ‘Crimson Skyblade’ unveiled: SCMP daily highlights

https://www.scmp.com/news/china/article/3295056/china-slams-calvin-klein-parent-firm-crimson-skyblade-unveiled-scmp-daily-highlights?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 .

China’s Ministry of Commerce (Mofcom) said on Thursday that PVH Group, the parent company of clothing brands Calvin Klein and Tommy Hilfiger, is involved with “inappropriate conduct” concerning Xinjiang matters, citing initial investigation results.

China’s leadership has called for institutional opening-up and efforts to build a “world-class” business environment this year as Beijing strives to rekindle confidence and growth, convince foreign firms to remain onshore and keep goods flowing as external shocks loom.

Chinese scientists have sent the world’s most powerful wireless communication protocol into space, slashing transmission delays from milliseconds to microseconds.

One of the scientific teams helping to develop a Chinese nuclear fusion reactor capable of producing unlimited power has unveiled a device they say will be key to testing whether the facility can withstand the intense flows of plasma produced during fusion.

Targeted action by Washington against Chinese shipbuilders in the waning days of Joe Biden’s presidency could offer a slight boost to South Korean rivals, but the impact may be very limited due to China’s overwhelming market dominance and strong backlog of orders, according to analysts and industry insiders.

Top officials in China’s Xinjiang Uygur autonomous region have hosted a group of international students from the US and other countries this week in an effort to debunk Western narratives about the region.

China represents a major economic challenge for Europe this year as the country has the European Union market in its sights amid industrial-overcapacity issues at home and an economic-growth slowdown, panellists said at a German think tank event on Wednesday.

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China’s top political adviser, Wang Huning, reaffirms support for private economy

https://www.scmp.com/economy/china-economy/article/3295065/chinas-top-political-adviser-wang-huning-reaffirms-support-private-economy?utm_source=rss_feed

China’s No 4 political figure has rallied efforts to strengthen entrepreneurs’ confidence, as the employment-vital private sector braces for a new year of challenges and uncertainties.

At a national meeting on Wednesday, Wang Huning, who is also the top official overseeing so-called united front work, pledged further support for the development of the private economy, which is responsible for more than 60 per cent of the nation’s gross domestic product and employs more than 80 per cent of the urban workforce.

“We must support the healthy development of the non-public sector and entrepreneurs, and also guide private enterprises and entrepreneurs to strengthen confidence, surmount challenges, and propel growth,” he said.

Private businesses, which have long complained about financing difficulties, high funding costs and inequality in market access, were hardest hit by the pandemic and its subsequent economic slowdown.

In addition to policy uncertainties, they are also worried about the fast-changing external environment, as they could be directly affected by US tariffs, sanctions or supply-chain disruptions.

One of Beijing’s latest attempts to address private business concerns is the private economy promotion law. A draft of the legislation was released in October for public feedback, and it could be reviewed by lawmakers during March’s annual parliamentary meetings known as the “two sessions”.

Chinese authorities are hoping the law revives investor confidence by cultivating a stable, fair, transparent and predictable business environment for private firms.

The 77-article draft stipulates measures to promote fair market competition; enhance the investment and financing environment; encourage private firms’ involvement in scientific projects and technological innovation; and safeguard economic rights and interests.

The draft law particularly tries to address the concerns of private entrepreneurs, including protections of private property and personal rights, while also setting restrictions on criminal investigations.

However, there are lingering concerns that the private economy is not clearly defined as a long-term goal within the socialist-market-economy framework.

Also, rising fines collected by some local governments, and cross-region law enforcement, have generated a degree of fear in the entrepreneurial community.

Last week, the State Council, China’s cabinet, issued a document to regulate law-enforcement actions against private enterprises, demanding that local governments refrain from arbitrarily fining private companies.

On the same day, the National Development and Reform Commission also issued a guideline prohibiting law-enforcement activities by local authorities outside their jurisdictions. It emphasised the necessity to prevent law enforcement and judicial activities from being conducted for profit, and to rectify any such instances.

Private investment, an important gauge of confidence, fell 0.4 per cent from a year earlier in the first 11 months of last year, official data showed. The full-year data is due to be released on Friday.

Also, the proportion of private investment among national fixed-asset investment declined to 50 per cent at the end of November from 56.4 per cent in 2019.

Beijing and Manila promise further South China Sea talks despite row over ‘monster ship’

https://www.scmp.com/news/china/diplomacy/article/3295081/beijing-and-manila-promise-further-south-china-sea-talks-despite-row-over-monster-ship?utm_source=rss_feed

Beijing and Manila have agreed to continue talks on settling their territorial differences despite Philippine protests about the presence of a Chinese “monster ship” near the contested Scarborough Shoal.

The Chinese side said both sides had “agreed to strengthen dialogue and contact on maritime issues and properly handle maritime disputes” following a meeting between Chen Xiaodong, the vice-minister for foreign affairs, and his Philippine counterpart Maria Theresa Lazaro in the Chinese city of Xiamen on Thursday.

The two sides pledged to boost cooperation in areas such as maritime security and science and technology, but China also criticised Manila’s “provocative activities” and attempts to “hype up disputes” in the South China Sea.

Meanwhile, Lazaro expressed “serious concern” about the presence of Chinese coastguard vessels in the Philippine exclusive economic zone but expressed a willingness to seek common ground, according to Bloomberg.

The talks were held under a mechanism to discuss their territorial disputes and attended by military and coastguard representatives and were the first of their kind since July.

They follow a series of clashes between the two countries’ coastguards over the past year around disputed South China Sea features.

Earlier this week, Manila accused China of “escalatory” and “provocative” behaviour by sending its largest coastguard vessel to waters near Scarborough Shoal, which is known as Huangyan Island in China and Panatag Shoal in the Philippines.

It said the 12,000-tonne “monster ship”, initially spotted off the west coast of Luzon earlier this month, other coastguard vessels and a naval helicopter had entered its exclusive economic zone, and demanded that China withdraw its ships.

The waters claimed by the Philippines as its exclusive economic zone overlap with China’s nine-dash line, which outlines its sweeping claims in the resource-rich waters.

Chinese foreign ministry spokesman Guo Jiakun said on Monday its coastguards’ activities were “lawful, justified and beyond reproach” and urged Manila to “stop spreading malicious remarks and driving a wedge between China and other countries”.

Biden strengthens US cyber defenses against Russia and China threats

https://www.theguardian.com/us-news/2025/jan/16/biden-cyber-china-russia

The Biden administration is making a final push to fortify America’s cyber defenses against mounting threats from China and Russia, issuing a sweeping cybersecurity executive order just days before leaving office that aims to tackle vulnerabilities from outer space to consumer electronics.

The wide-ranging directive is likely to be the administration’s last big policy push before handing the keys over to Donald Trump, who heads to the White House next week and inherits a new world of cyber attacks that have cost the nation billions of dollars and punctured government offices.

“The goal is to make it costlier and harder for China, Russia, Iran and ransomware criminals to hack and to signal that America means business when it comes to protecting our businesses and our citizens,” a senior administration official told reporters on Wednesday.

The order arrives in the wake of devastating Chinese-linked cyber attacks, including recent breaches of the US treasury department and telecommunications systems that reportedly compromised communications of incoming president Donald Trump and vice-president-elect JD Vance.

Among its most striking provisions is a mandate for federal agencies to implement end-to-end encryption for email and video communications, alongside new requirements for artificial intelligence-powered cyber defence systems and quantum computing safeguards.

Central to the order is an expansion of the Cybersecurity and Infrastructure Security Agency’s (Cisa) powers to hunt for threats across federal networks. The nation’s premier cyber agency – which Trump put together in 2018 – will gain new authorities to verify security commitments from government contractors and coordinate with federal technology officers.

The order mandates that by 2027, federal agencies may only purchase internet-connected devices carrying a “cyber trust mark” – effectively using government procurement power to pressure manufacturers to improve security standards for products like baby monitors and home security systems.

The directive also ventures into the great unknown, requiring enhanced cybersecurity measures for space systems following Russia’s targeting of Ukrainian satellite communications during its invasion.

The timing of the order has raised questions about its longevity. Deputy national security adviser Anne Neuberger, who spearheaded the order over the course of the last few months, is set to step down on 17 January, and the incoming Trump administration’s cyber team has not yet been officially named. Politico reports that Trump 1.0 cybersecurity alum Sean Plankey is the top choice considered to lead the agency.

Trump’s transition team did not respond to a request for comment on whether the incoming administration would follow through with the order’s directives, which sets 53 deadlines for various agencies, stretching from 30 days to three years.

For now, the senior administration official remained optimistic about the order’s staying power, framing the order as an urgent response to escalating threats.

“Making our infrastructure as a nation more defensible and making it easier to sanction and push back against cyber actors – both of those are pretty bipartisan goals,” the senior official said.

US executive order targets China, other alleged cyberattackers days before Joe Biden exits

https://www.scmp.com/news/china/article/3294937/us-executive-order-targets-china-other-alleged-cyberattackers-days-joe-biden-exits?utm_source=rss_feed

In a last bit of unfinished business before Joe Biden’s presidency ends, the White House on Thursday announced an executive order meant to bolster US security and sanction authority against China and other alleged cyberattackers of critical infrastructure.

The new rules included tougher standards to ensure that software is more secure and demand more rigorous verification and evaluation procedures, according to Anne Neuberger, cyber and emerging technology deputy at the National Security Council.

“We’ve spent the last seven months carefully reviewing each hacking incident to check exactly how the Chinese, other governments and criminals got through the gates,” Neuberger said.

“If an entity is conducting disruptive attacks against critical infrastructure, we will come after them. We can sanction them and use that tool, particularly around the world.”

The senior official singled out Beijing’s suspected hacking of Treasury Department servers and Microsoft cloud accounts along with Russian and criminal ransomware attacks on energy, healthcare, banking and other essential infrastructure.

Beijing has denied the accusations, saying they are “groundless” and “lack evidence”.

US travel and financial sanctions cannot be enforced in China, Russia or other foreign countries and would only apply if alleged cybercriminals attempted to use the global financial system or travel to the US or an allied country.

The Biden administration, which leaves office on Monday, has been criticised in recent weeks for issuing new rules and executive orders on its way out the door, including Monday’s announcement of expansive global restrictions on the export of AI chips.

Thursday’s cybersecurity order was supposed to come out last week but was reportedly delayed so the White House could make it more palatable to the incoming Donald Trump administration.

Neuberger in a call with reporters on Wednesday said she has not been able to confer with Trump’s cyberexperts since they had not been named, but added that she expected little opposition.

“Making our infrastructure as a nation more defensible and making it easier to sanction and sharpen the authority to push back against cyberactors, both of those are pretty bipartisan,” she said.

This latest order sought to rectify shortcomings in Biden’s May 2021 cybersecurity order, said Neuberger, who is also a deputy assistant to the president.

That initiative called for tougher software standards and safeguards sold to US government agencies but lacked a mechanism to check or enforce whether it actually occurred.

This time, not only will contractors have to meet more rigorous standards, but those who do not will be dropped.

Verification results will be publicised so that banks, hospitals and others in the private sector can make better choices and stem the US$166 billion in fraud suffered annually by Americans.

The order also takes steps to substantially strengthen cryptographic keys, strings of characters that control how advanced algorithms work.

“Theft of those keys by China is what enabled China to compromise Microsoft cloud, what enabled Chinese actors to compromise Treasury’s identity provider,” Neuberger said.

Unlike laws, executive orders can be relatively easily reversed, giving Trump the option of killing this and other Biden initiatives.

In addition, the new rule would tap public-private partnerships to deploy AI in patching and reworking software code in the energy industry where cyberattacks leave average Americans particularly vulnerable.

And it would defend against threats to commercial space systems as well as promote systems able to resist code breaking by powerful quantum computers.

The goal of Thursday’s executive order was to make it “harder for China, Russia, Iran and North Korea to hack” and “provide more tools to punish them”, the career government official said.

In a related development, the White House on Wednesday announced sanctions on more than 150 Chinese companies and individuals supporting Russia’s war in Ukraine.

Meanwhile, the US Treasury Department designated 15 firms and one person involved in a sanction-evasion scheme between Russia and China.

Those sanctions came less than a week after the US unveiled sweeping sanctions against Russia’s energy sector, designating more than 180 ships as well as major Russian oil companies Gazprom Neft and Surgutneftegas.

Apple trails Huawei, Vivo in China smartphone market in 2024, iPhone leads fourth quarter

https://www.scmp.com/tech/big-tech/article/3295034/apple-trails-huawei-vivo-china-smartphone-market-2024-iphone-leads-fourth-quarter?utm_source=rss_feed

Apple recaptured the top spot in China’s smartphone market in the fourth quarter, but it fell to third place in 2024 after a year of escalating competition from domestic players, including a resurgent Huawei Technologies.

The US tech giant saw smartphone shipments in China plummet 25 per cent to 13.1 million units in the three months through December, down from 17.5 million a year earlier, according to data released by research firm Canalys on Thursday. It narrowly edged out Chinese vendors Vivo and Huawei, which each shipped 12.9 million smartphones, giving all three companies a market share of roughly 17 per cent.

Xiaomi and Oppo ranked fourth and fifth in the fourth quarter, shipping 12.2 million and 10.6 million units, respectively.

Huawei has seen rapid growth in the Chinese smartphone market since the US-sanctioned firm introduced new home-grown chips in 2023. Its shipments were up 24 per cent year on year for the quarter and 37 per cent for the full year. Its shipments reached 46 million units last year, according to Canalys.

For the full year, Apple was behind Vivo and Huawei in its second-most important market, after reaching the top in 2023. Its shipments fell 17 per cent to 42.9 million units for the year. The iPhone maker made up 15 per cent of the market, while Vivo and Huawei took 17 per cent and 16 per cent, respectively.

China’s smartphone market as a whole saw shipments rise 5 per cent to 77.4 million units in the fourth quarter, and shipments were up 4 per cent for the full year to 285 million units, according to Canalys. It marked a recovery in the region after two years of decline.

Rising domestic competition, worsened by US-China tensions that have contributed to patriotic rallying around Huawei, has put pressure on Apple in China as it also faces uncertainty around the launch of its new artificial intelligence service on the mainland. Its shipments in the market were down 25 per cent and 6 per cent year on year in the first and third quarters. In the second quarter, it fell out of the top five.

“Intense competition has led to a constantly shifting landscape, with vendors actively seeking to expand investments in their advantageous field,” Canalys research manager Amber Liu said in the report.

“In addition to driving sales through seasonal promotions, Apple is enhancing its high-end competitiveness and user retention by improving retail experiences through channel management, offering trade-in programmes and expanding coverage of interest-free instalment plans,” she added.

The company has been offering rare discounts to Chinese consumers to boost sales. Earlier this month, Apple introduced new price cuts for iPhones and other products on its China website and at bricks-and-mortar Apple Store locations to help boost sales on the mainland.

Canalys forecasts smartphone shipments in China will surpass 290 million units this year.

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China’s yuan on the rise in oil trade, but petrodollar here to stay: report

https://www.scmp.com/economy/global-economy/article/3295048/chinas-yuan-rise-oil-trade-petrodollar-here-stay-report?utm_source=rss_feed

The expansion of China’s digital yuan and financial technology are helping to boost yuan settlements in the crude trade and hastening the decline of the petrodollar, a report from a macroeconomic forecasting firm said – though a changing of the guard remains unlikely.

“The petrodollar’s decline in the Gulf isn’t a question of if, but when – and ‘when’ is coming faster than most realise,” said Diana Choyleva, chief economist at London-based Enodo Economics, citing “rapid changes in the technology of finance” in the report published Wednesday.

“While a petroyuan may gain ground, it is unlikely to fully supplant the petrodollar in the foreseeable future,” said the author, also a senior fellow at the Asia Society Policy Institute’s Center for China Analysis.

Broader adoption of the petroyuan – shorthand for the use of China’s currency in cross-border crude oil settlements – is widely seen as a necessary step in the yuan’s further internationalisation and a challenge to the dominance of the US dollar in global commodity markets.

As the world’s largest oil importer, China has fast-tracked the development of an independent financial infrastructure to reduce its reliance on US dollar-based systems and the potential weak points therein. Of particular interest to Enodo were the Cross-border Interbank Payment System (CIPS) and the inclusion of China’s e-CNY on the mBridge platform for central bank-backed digital currencies.

These innovations “offer oil producers not only viable but potentially superior alternatives” to dollar-based settlement channels, Choyleva said, which carry a “particular vulnerability to disruption” from technological advances.

In October 2023, China completed its first cross-border crude oil settlement in digital yuan, with PetroChina International using e-CNY to purchase 1 million barrels.

Meanwhile, the report noted, Saudi Arabia and its Gulf neighbours – global petroleum powerhouses – also require massive investment in technology and infrastructure as they seek to diversify their economies and reduce their dependence on the oil trade.

Initiatives like Riyadh’s Vision 2030 have fostered growing industrial and technological ties between the Gulf states and China, creating “natural outlets for yuan-denominated oil revenues”.

At the China-Arab States Cooperation Forum last year, President Xi Jinping encouraged Arab banks to join China’s CIPS payment system and participate in its digital yuan initiatives, an offer Choyleva said indicates “a more patient, systematic approach” to financial integration.

The author said Beijing appears to prioritise “optionality rather than exclusivity” in its petroyuan strategy, choosing to make yuan payment one of several alternatives rather than a requirement.

“[It] suggests a long-term perspective that prioritises sustainable progress over dramatic yet potentially destabilising change,” she added.

But the US dollar-based oil pricing system’s resilience – along with its broader legal and institutional framework – makes full decoupling costly and complex, Enodo said, leading most countries to pursue partial rather than complete replacement.

Choyleva suggested the most likely outcome was the gradual expansion of Saudi Arabia’s yuan settlement and investment while maintaining the core structure of the petrodollar system.

“This aligns with Saudi preference for carefully balancing relationships and pragmatic advancement of interests,” she said.

Data from the People’s Bank of China showed cross-border yuan receipts and payments rose 23 per cent year on year to 64 trillion yuan (US$8.7 trillion) in 2024, with the currency among the world’s top three for trade financing.

The yuan moved up a position in the global ranking of currencies by their proportion of international payments in November. According to the Society for Worldwide Interbank Financial Telecommunication, the world’s largest interbank messaging service, the yuan placed fourth that month with a share of 3.89 per cent.

Could Trump finally call off the cold war with China?

https://www.scmp.com/opinion/world-opinion/article/3294718/could-trump-finally-call-cold-war-china?utm_source=rss_feed

Of the many dramatic and absurd occurrences that marked the 2024 US election campaign, one of the most confusing was Donald Trump’s praise of Chinese President Xi Jinping – his supposed arch-geopolitical rival in the new cold war.

At an event in July 2023, Trump described Xi as “smart, brilliant, everything perfect” and said that there was “nobody in Hollywood like this guy”. In July last year, he said Xi wrote him a “beautiful note” after hearing of the attempt on his life.

“He’s a brilliant guy whether you like it or not,” Trump told podcaster Joe Rogan in October. “He controls 1.4 billion people with an iron fist.” When Rogan said that didn’t mean Xi wasn’t evil, Trump replied, “We have evil people in our country.”

Xi is not the only leader of a rival of the US who Trump has praised. In 2022, after Russia’s invasion of Ukraine, Trump said Russian President Vladimir Putin was “savvy” and a “genius”. While US President Joe Biden has called Hamas’ attack on Israel on October 7, 2023 an “unadulterated evil”, Trump has held back moral judgment and instead described Hamas’ ally Hezbollah as “smart”.

Indeed, Trump’s remarks stand in stark contrast to how US ideological rivals have been framed over the last century. The Soviet Union was called an “evil empire”. Iraq, Iran and North Korea were termed an “axis of evil”.

Trump’s reframing of geopolitical rivals from “evil” to “smart’ is part of his attempt to boost his own image. As pro-Nazi German theorist Carl Schmitt argued, to have credibility as a leader you must frame yourself as the antithesis of a threat posed to the community. With this insight, Putin’s and Xi’s purported brilliance and toughness are central to constructing Trump’s claim to being the perfect person for the US presidency.

In a world dominated by such figures, you certainly do not want a “sleepy Joe” at the helm in Washington and the lack of respect it supposedly inspires, emboldening men like Putin. You need an equally tough genius leader with a shrewd business mind. You need the man who could make even the brilliant and tough Xi pay US$28 billion to US farmers. You want Trump.

Nevertheless, this refusal to condemn the supposed enemies of democracy and instead openly praise autocracy could be seen as marking a deep and dramatic shift in US ideology. It signals the abandonment of American exceptionalism.

Under American exceptionalism, the values of liberal capitalist democracy are not only US values but universal ones and Washington has a manifest obligation to spread them across the globe. It holds that today’s US will be the world’s tomorrow and that inside everyone is an aspiring American.

Under this logic, the only power that prevents this universalisation is authoritarian leaders who stem the tide of democratisation and oppress their people. Thus, American foreign policy must support democracy and fight tyranny.

When you believe your enemy is evil, it becomes a moral duty to confront them. As philosopher Jean Bethke Elshtain argued in support of US invasions of Afghanistan and Iraq, a war against the enemies of democracy is not just morally justifiable but imperative. For George W. Bush, indifference against the “axis of evil” was not an option. Refusing to confront the Soviet Union, for Ronald Reagan, was to refuse to side with good against evil.

Under the Biden administration, China became increasingly framed in this manner. Biden called Xi a dictator. China was called a “decisive” enabler of Russia’s war against Ukraine. Nancy Pelosi when she was speaker of the US House of Representatives framed the Communist Party of China’s actions towards Taiwan as oppressive and menacing. She implied that the US must promote democracy not only in Ukraine and Taiwan but seemingly also in mainland China.

Confrontation with Beijing has become a moral cause necessary to protect democracy. Indeed, echoing Elshtain, it was framed by Pelosi as an imperative.

In such a climate, confrontation becomes expected while compromise or cooperation is frowned upon and seen as weakness. When you frame your rival as an evil enemy, any negotiation appears to be appeasement, triggering inevitable comparisons to former British prime minister Neville Chamberlain’s doomed Munich Agreement.

This is the situation facing Britain’s Labour Party government as it seeks trade deals with China whose authoritarianism it has morally condemned. British finance minister Rachel Reeves is unsurprisingly being accused of compromising on principles and her visit to China compared to “dealing with Nazi Germany”.

Trump, however, does not have this ideological baggage and will not have the same moral pressures to confront Xi. Making a deal with Xi will not be regarded as weakness or appeasement but as strength and proof of Trump’s ability to bargain with the toughest and most brilliant men on the planet.

Trump’s refusal to defend democratic values while praising autocracy will fuel the argument that he is an enemy of democracy. Threats and tariffs suggest negotiations with China will be tough. However, Trump is free of all the moral pressures and obligations to confront Xi on ideology.

In fact, Trump has all the incentive to cooperate with Beijing – to prove his acclaimed bargaining skills – and none of the moral pressure to confront the Communist Party. The Trump administration could very well steer the US away from a collision with China and arrive at some form of a deal. The new cold war could thaw before the ideological frosts ever truly set in.

China’s local governments raise minimum wages to boost consumption

https://www.scmp.com/economy/china-economy/article/3295043/chinas-local-governments-raise-minimum-wages-boost-consumption?utm_source=rss_feed

Local governments in China have been raising minimum wages, viewing a boost to the spending power of the country’s middle- and low-income groups as a top priority in efforts to stimulate consumption in an economy beset with external uncertainties.

Five provincial-level regions – the provinces of Shanxi and Sichuan, the Inner Mongolia and Xinjiang Uygur autonomous regions, and the southwestern megacity of Chongqing – increased their minimum wages recently, according to data released by the Ministry of Human Resources and Social Security on Monday, with the increases ranging from 70 yuan (US$9.55) a month to over 200 yuan.

Chongqing raised its minimum monthly wage, which was 2,000 yuan in October, to 2,200 yuan, representing a 10 per cent increase. Meanwhile, neighbouring Sichuan also raised its minimum wages by 17.6 per cent, from 1,870 yuan to 2,200 yuan.

Xinjiang, in western China, previously had the country’s lowest minimum wage at 1,540 yuan a month, but it now mandates a minimum wage of 1,750 yuan a month, up 13.6 per cent from the previous level.

Due to varying standards of living across China, local governments set their own minimum wages. The minimum wage in Shanghai, China’s financial hub, remains the highest at 2,690 yuan a month, with the national capital, Beijing, in second place on 2,420 yuan.

Nearly half of China’s provincial-level governments increased minimum wages last year.

The increases will primarily benefit factory workers and those in low-paying service roles, such as cleaners, security guards and supermarket cashiers.

With trade tensions expected to ramp up this year following next week’s inauguration of Donald Trump as US president, authorities in China, the world’s second-largest economy, are focusing on expanding domestic demand to stimulate growth. Increasing wages for the middle- and low-income groups is seen as an effective strategy.

Liu Shijin, a former deputy director of the State Council’s Development Research Centre, has said there are 900 million low-income people in China, accounting for 64.2 per cent of the total population.

In the government work reports of Beijing and Zhejiang province, presented at the annual meeting of their people’s congresses this week, increasing the incomes of the middle- and low-income groups to “boost their willingness and capability to spend” was highlighted as a key economic priority.

An article published in the state-owned Economic Daily on Monday emphasised the importance of increasing investment in human resources for migrant workers and urban wage earners, aiming to establish an income distribution system that favours ordinary workers.

In 2023, the annual per capita disposable income for the low-income group, as categorised by the National Bureau of Statistics, was 9,215 yuan, or about 768 yuan a month. For the lower-middle-income group, it was 20,442 yuan a year, or 1,703 yuan a month.

Local government officials have been urged to take the lead in boosting consumption, with one district party head in Chongqing recently calling on cadres to buy clothes and dine out to “lead consumption, promote consumption and guide consumption”.

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China shop becomes favourite for hundreds of students who flock there to watch TV for free

https://www.scmp.com/news/people-culture/trending-china/article/3293917/china-shop-becomes-favourite-hundreds-students-who-flock-there-watch-tv-free?utm_source=rss_feed

A snack shop in southern China has gone viral online because of the number of primary school students who flock to it after school as part of their daily routine.

Feijuan Snack in Suixi county, Guangdong province, is always crowded with young customers dressed in school uniforms, the Xiaoxiang Morning Herald reported.

Students go there because of its cheap prices, for example just two yuan (27 US cents) for French fries, three yuan for chicken fillets and just one yuan for spicy noodles.

They also love the place because they can watch television for free after school.

The shop could be the country’s first to have opened at the behest of the students. Its renovation was also done under the supervision of the pupils.

Before reopening on December 26, the store, located near a primary school, was a struggling children’s shoe shop, packed with students as they waited for their parents to pick them up.

Its owner Qiu Zhijuan and her husband Lin Jinghuan let the children sit on long benches and provided them with free cartoon TV programmes even when it was a shoe shop.

The second-hand TV set cost 500 yuan (US$70), said Lin.

In early July 2024, video footage from the shop amused internet users by showing dozens of young students knocking on the door and urging a sleeping Qiu to open up.

After she opened the door, the children rushed in and sat in front of the TV set.

The couple closed the store in November due to financial pressure, disappointing the youngsters who flocked there.

The couple then started to revamp the store and many students often visited to check on the progress, sometimes helping with the renovation work.

The students also volunteered to find out what competing shops were charging for their wares.

“They gave us a lot of good advice,” Lin was quoted as saying.

“For example, a boy told me to sell spicy noodles for one yuan and in a small amount because they just want to have a taste and do not want to eat too much to affect their consumption of dinner. I adopted his idea.”

Revenues at Feijuan Snack have surged as a result.

Of the children, Qiu said: “We treat them as friends and get along with them happily.

“Some kids will help maintain the order. If there is a conflict among some students, others will intervene to calm things down.”

The story has resonated online.

“I see their store as a playground,” said one internet user.

While another joked: “The students go to the shop like they are returning home, ha ha.”

China accuses PVH Group of ‘inappropriate conduct’ on Xinjiang matters

https://www.scmp.com/economy/china-economy/article/3295032/china-accuses-pvh-group-inappropriate-conduct-xinjiang-matters?utm_source=rss_feed

China’s Ministry of Commerce said on Thursday that PVH Group, the parent company of clothing brands Calvin Klein and Tommy Hilfiger, is involved with “inappropriate conducts” concerning Xinjiang matters.

The ministry’s office overseeing the Unreliable Entity List mechanism – a blacklist similar to the US entity list – will hold a regulatory talk to the US firm in the short term, according to an online statement. The results will be released to public, it added.

More to follow …

For Europe, China looms as 2025 economic threat, analysts say amid overcapacity concerns

https://www.scmp.com/economy/global-economy/article/3295010/europe-china-looms-2025-economic-threat-analysts-say-amid-overcapacity-concerns?utm_source=rss_feed

China represents a major economic challenge for Europe this year as the country has the European Union market in its sights amid industrial-overcapacity issues at home and an economic-growth slowdown, panellists said at a German think tank event on Wednesday.

Trouble spots in the world’s second-largest economy were expected to pressure Chinese manufacturers into shipping excess factory goods to Europe at low prices, per the views voiced at the Mercator Institute for China Studies (Merics) 6th China Forecast conference.

Meanwhile, panellists at the live-streamed event said they expected the US to remain a European ally, despite all the unknowns surrounding president-elect Donald Trump’s foreign policy.

Conference speaker Julia Friedlander, CEO of Atlantik-Brucke, an advocacy group for German-American relations, said China poses a “longer competitiveness challenge and a sort of strategic challenge” because of what she called a stated intent to outperform Europe.

“From the competitiveness side, the explicit attempt [is] to out-compete Europe in key industries,” Friedlander said. China is particularly “consistent” with policies on electric vehicles and hi-tech goods, she said.

China is staring down the barrel of overcapacity this year, meaning some Chinese exports may be “redirected” to the EU, where they would not all be absorbed, cautioned Elena Suarez Sanchez, senior international relations adviser for lobby group BusinessEurope.

China-EU trade of US$762 billion last year rose just 1.6 per cent over 2023, according to customs data from both sides.

The two partners are major producers and buyers of EVs. China’s EV shipments to Europe last year sparked an anti-subsidy investigation that ended in October with duties of up to 35.3 per cent on Chinese exporters.

Beijing, saying the tariffs represent “unfair competition”, responded with a complaint to the World Trade Organization and with levies on European brandy imports. Beijing was also considering whether to raise tariffs on large-engine European motor vehicles.

The European bloc has conducted separate anti-subsidy probes into Chinese solar panels and a Chinese train maker.

China should boost domestic consumption by turning over “control” of the economy to its people, suggested Matt Turpin, a visiting fellow from the US-based Hoover Institution.

The absence of such a shift is “placing everybody else’s economy at risk” and making the EU-China relationship “very contentious”, he said.

BusinessEurope’s Suarez added: “I think that the US will continue to be one of our major allies.” Both sides, she said, face “challenges when it comes to the China issue”.

Trump’s second term comes with “huge uncertainty” about what he will really do, Suarez said. He will be inaugurated on Monday.

Merics also released survey results showing that two-thirds of 843 experts from 58 countries believed China’s 2025 economic growth would be less than 5 per cent. More than two-fifths of respondents said domestic property issues were the biggest risk facing China.

In light of potential threats, Friedlander advised the 27 EU members to align more staunchly behind Brussels.

Of the survey respondents, 70 per cent expected China to steer its 2025 foreign policy to enhance cooperation with non-Western partners, but get closer to EU member Hungary, which has taken a relatively friendly stance toward economic cooperation with China.

China’s Xinjiang hosts foreign university students to debunk Western narratives

https://www.scmp.com/news/china/politics/article/3295021/chinas-xinjiang-hosts-foreign-university-students-debunk-western-narratives?utm_source=rss_feed

Top officials in China’s Xinjiang Uygur autonomous region have hosted a group of international students from the US and other countries this week in an effort to debunk Western narratives about the region.

Ma Xingrui, the Communist Party chief of Xinjiang, and Erkin Tuniyaz, chairman of the regional government, had “in-depth and friendly exchanges” with a delegation of foreign university students in regional capital Urumqi on Tuesday, according to a report by the official Xinjiang Daily on Wednesday.

Ma noted that most of the students were visiting the region for the first time, and said he hoped they would feel “the true situation in Xinjiang and its beauty, harmony, unity and happiness”.

He said he hoped they would realise that the “slander by some international forces” was “completely a lie”, adding that this included allegations of forced labour and genocide in Xinjiang, according to the report.

Ma said Xinjiang’s opening-up efforts were “for real” and that he hoped to see more international students in China visit Xinjiang to “deepen exchanges and cooperation and enhance understanding and mutual trust”, according to the report.

The report did not say how many students were in the delegation, nor did it identify them or their universities.

In 2014, Beijing launched a sweeping security crackdown in Xinjiang that it said was designed to combat terrorism after a string of attacks heightened tensions in the region. Western countries have accused Beijing of widespread human rights abuses while carrying out the crackdown, including allegations about the use of large internment facilities and forced labour – accusations it denies.

The US Department of Homeland Security announced on Tuesday that it would add 37 Chinese entities to its list of those banned from exporting to the US due to alleged forced labour practices, marking the biggest single expansion of the list to date.

Chinese foreign ministry spokesman Guo Jiakun on Wednesday called the forced labour accusations “completely unfounded” and reiterated that China would take resolute measures to protect the legitimate and lawful rights and interests of Chinese companies.

Xinjiang has launched a series of charm offensives since President Xi Jinping visited the region in August 2023. During the visit, Xi told the region’s officials to “strengthen positive publicity” and “tell the story of Xinjiang well to the world”.

In October, the region hosted a media summit in Urumqi, inviting more than 500 representatives from 208 local and international media outlets, as well as UN agencies and international organisations. At the meeting, Ma urged the international press to “objectively report and record Xinjiang, resist false information, and oppose rumours and prejudices”, according to official media reports.

Xinjiang also hosted an unprecedentedly large group of senior diplomats in April in a bid to showcase the region. The group included 21 ambassadors to China and more than 50 other diplomats from 49 countries.

Xinjiang has strengthened its efforts to attract overseas students, particularly from countries in Central Asia.

As of late last year, more than 13,000 international students were studying in Xinjiang universities, an increase of 1.75 times compared with 2023, according to Xinjiang Daily. Of those international students, 78 per cent were from Central Asian countries, a key region for the Belt and Road Initiative, the report said, referring to Beijing’s strategy to grow global trade and infrastructure links.

Tech war: US adds Chinese AI unicorn Zhipu to trade blacklist before Biden’s exit

https://www.scmp.com/tech/tech-war/article/3295002/tech-war-us-adds-chinese-ai-unicorn-zhipu-trade-blacklist-bidens-exit?utm_source=rss_feed

Chinese start-up Zhipu AI said it “strongly disagrees” with a US decision to add the company and its subsidiaries to an export blacklist, as the administration of President Joe Biden released a flurry of trade restrictions just days before he leaves office.

The US Department of Commerce on Wednesday added 25 China-based companies and two Singapore-based firms to its Entity List, accusing them of supporting Beijing’s military advance. Blacklisted companies are barred from buying technology from US businesses without special government approval.

Beijing-based Zhipu said late on Wednesday that the US move “lacks a factual basis”. It added that the firm’s inclusion on the Entity List “will not have a substantial impact” on its operations.

Also included in the updated list is Sophgo, a Chinese chip designer that attracted scrutiny last year after a chip it ordered from Taiwan Semiconductor Manufacturing Company (TSMC) was found to match one used in a Huawei Technologies processor. Huawei has been on the Entity List since 2019.

Another newly added entity is the little-known Singapore-based company PowerAIR. TSMC ended its business relationship with the secretive firm after a client review exposed a potential breach of US export controls, according to an exclusive report by the South China Morning Post last week.

Sophgo did not immediately respond to a request for comment on Thursday. The Post was unable to contact PowerAIR, which does not have any official website, publicly listed phone number or email address.

Beijing-based Sophgo and its affiliate, bitcoin mining equipment supplier Bitmain, previously denied any business ties with Huawei.

The Biden administration in recent days introduced a series of rules and sanctions aimed at curbing China’s advance in semiconductors and artificial intelligence (AI). On Wednesday, the US tightened licensing requirements on contract chip manufacturers and packaging companies seeking to export certain advanced semiconductors.

As part of the strengthened rules, companies like TSMC are required to conduct better due diligence on new customers that may potentially divert restricted chips to countries like China. This is in addition to new regulations unveiled by the US on Monday, designed to prevent Chinese companies from accessing advanced chips through intermediary countries.

Several industry advocacy groups and companies have voiced their opposition to the restrictions. The US-based Semiconductor Industry Association said policies aimed at deterring China’s AI development might backfire to “undercut US leadership and competitiveness” in the chip and AI industry.

Zhipu is one of China’s four “AI Tigers” that represent the country’s best hope of narrowing its technological gap with the US. The unicorn, valued at 20 billion yuan (US$2.7 billion) last September, counts Alibaba Group Holding, Tencent Holdings and HongShan Capital Group as investors. Alibaba owns the Post.

Zhipu specialises in building large language models, the type of technology underpinning generative AI services such as OpenAI’s ChatGPT.

Its subsidiary Beijing Lingxin Intelligent Technology, also on the latest Entity List, develops AI companions that the company claims can understand human emotions.

Sophgo, which designs AI processors and chips based on the open-source architecture RISC-V, is an active player in China’s push to reduce dependence on foreign technologies.

Chinese investment bank CICC cleared to operate in Dubai financial centre

https://www.scmp.com/business/banking-finance/article/3294971/chinese-investment-bank-cicc-cleared-operate-dubai-financial-centre?utm_source=rss_feed

China International Capital Corporation (CICC) has received a licence to operate in the Dubai International Financial Centre (DIFC), adding to the presence of Chinese firms in the United Arab Emirates as cross-border activities continue to expand.

The investment bank will join China’s five largest banks that have set up bases in the special economic zone. This expands the range of financial services available to support cross-border activities, including trade and sustainable finance, according to Ian Johnston, CEO of the Dubai Financial Services Authority (DFSA).

“To have CICC, one of the major investment banks, which can facilitate deals and arrangements, [is] a big step forward,” Johnston said on the sidelines of the Asian Financial Forum on Tuesday in Hong Kong.

CICC Hong Kong Securities received the licence last week. It allows the company to arrange and advise on credit, financial products and investment deals, according to the DFSA public register.

CICC declined to comment. Xu Jia, the deputy head of its investment banking department, said in a media briefing on Tuesday that the bank’s overseas units would aim to “meet the needs of Chinese enterprises for cross-border mergers, acquisitions, and greenfield investments”.

“We also recognise the demand for independent equity financing and listings for these Chinese firms’ incubated enterprises abroad,” Xu said.

Johnston said that Chinese banks are gaining clients in areas such as infrastructure and project finance, building on the existing dealings related to trade.

Total assets under management by Chinese banks in the DIFC surged more than 33 per cent over the past three years to US$65.3 billion at the end of 2024, according to data from DFSA, which is an independent regulator for business conducted in or from the DIFC.

The DIFC hosted 16 Chinese firms as of 2024, comprising six representative offices, five commercial banks, two wealth managers, one broker, one adviser and one insurer. The number has doubled since 2021.

Nasdaq Dubai, one of the emirate’s exchanges, has around 22 securities listings from issuers in Hong Kong and mainland China, with a value of US$12.3 billion. China’s Ministry of Finance listed two bonds totalling US$2 billion on Nasdaq Dubai last November, joining other Chinese issuers like the Hong Kong government and the top banks in China.

In recent years, the DFSA has moved to strengthen international cooperation to achieve net-zero targets. It signed an agreement with the Hong Kong Monetary Authority to bolster sustainable finance and held a joint climate-finance conference in September in the city.

The issuance and listing of green bonds is an area of focus under the collaboration, Johnston said. “Both of our governments are committed to net-zero targets over time, and for that transition to happen, it needs to be funded,” he added.

Dual listings of green bonds could be on the horizon, as bourse operator Hong Kong Exchanges and Clearing made the Dubai Financial Market a recognised stock exchange in July, Johnston said.

“There’s a very strong priority on decarbonisation and getting down to net zero,” he said.

“The China-Middle East corridor is a real thing. We at the government, policy and regulatory levels have to take away the blockages and provide opportunities for people to cross-invest.”

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China retail giant bans staff from engaging in domestic violence, sparks privacy concerns

https://www.scmp.com/news/people-culture/trending-china/article/3294659/china-retail-giant-bans-staff-engaging-domestic-violence-sparks-privacy-concerns?utm_source=rss_feed

The well-known Chinese supermarket chain Pang Dong Lai has sparked controversy with rules governing employees’ family and personal matters, such as banning them from beating their children or imposing domestic violence on their spouses.

A heated discussion on mainland social media came after the retail giant’s boss Yu Donglai announced a series of new management rules on his social media account on January 13, Jimu News reported.

“Based on the spirit of freedom, the belief in love and the mission of letting more people live a happy life, Pang Dong Lai has made more and more rules by learning Chinese and advanced global management methods,” said Yu.

The new rules include forbidding its employees from opposing or obstructing their spouse’s request for divorce in cases of an unhappy marriage.

“From this year, domestic violence is not permitted in the families of our staff. Hitting your child is also not allowed,” the rules read.

“If you borrow money from others, you should not ask for an amount higher than your monthly salary. Your house should be clean and tidy and you should prepare firefighting equipment in your home.”

Other rules include that employees should not dislike their work and they must “domain and plan” their life by themselves, rather than relying on their parents or others.

Yu did not reveal what the punishment will be if workers do not fall in line.

The unusual company policies trended on social media after being viewed 9 million times alone on a major platform.

They were also met with a mixed public response.

“I support Pang Dong Lai’s decision. This company always advocates positive and healthy virtues and traditional values. I think this enterprise culture helps it achieve business success,” one online observer said.

But many people did not feel comfortable with the requirements.

“The boss is nosy. He controls his employees like a father,” said another internet user.

“The company has infringed workers’ privacy. I will not buy anything from its supermarket,” said another.

Fu Jian, a lawyer from Henan Zejin Law Firm, told Yuan News that the rules are legitimate if they are not linked to workers’ pay.

“But what the company stipulates are apparently not related with employees’ job responsibilities and are beyond a reasonable management scope of an employer,” Fu was quoted as saying.

“An enterprise should not interfere with an employee’s personal life. If it makes mandatory rules regarding workers’ personal life, it might infringe on people’s personal freedom and privacy,” he added.

Pang Dong Lai, based in central Henan province, has earned praise and popularity in China in recent years for its considerate service, products with a high-cost performance and its unique enterprise culture.

Its founder and chairman Yu has been dubbed the country’s “silliest boss” for putting staff happiness at the top of his list of priorities.

Months ago, the company came under scrutiny for requiring workers to reject bride prices, forgo lavish weddings, and avoid depending on their parents to buy houses or cars.

Amid public pressure, the company later clarified that these were values it promoted and were not mandatory requirements.

Marco Rubio, US secretary of state nominee, echoes Trump’s Panama Canal China concern

https://www.scmp.com/news/china/diplomacy/article/3294940/marco-rubio-us-secretary-state-nominee-echoes-trumps-panama-canal-china-concern?utm_source=rss_feed

Florida’s Senator Marco Rubio, nominated by president-elect Donald Trump as Secretary of State, sharply criticised China’s global ambitions during his confirmation hearing on Wednesday, singling out Beijing’s involvement in the Panama Canal as a significant threat to US national security.

Wading into an issue that made headlines when Trump claimed last month that the canal was “foolishly” given to Panama, Rubio described the waterway as a strategic vulnerability due to Chinese influence, as state-linked Chinese companies currently operate ports at both ends.

The canal handles as much as 5 per cent of global trade and is vital to America’s regional military operations and economic interests.

“I’m compelled to respect that an argument could be made that the terms under which that canal were turned over have been violated, because, while technically, sovereignty over the canal has not been turned over to a foreign power, in reality, a foreign power possesses it through their company companies,” Rubio said

“If [China] orders a company to shut it down or impede our transit, they will have to do so,” he added.

Completed by the US in 1914, the Panama Canal remained under its control until being transferred to the Panamanian government in 1999 as part of a bilateral agreement signed 22 years earlier.

The waterway has long been an important part of Washington’s economic power, as more than 70 per cent of the ships transiting it every year are tied to US trade, and Rubio’s concerns align with Trump’s recent rhetoric on the issue. This has included a controversial proposal to repurchase or even take the canal by force, a move he claims would bolster US economic and military security.

House Republicans recently introduced a bill that would allow Trump to buy the waterway, citing Chinese investments in Panamanian infrastructure as a growing threat.

China’s involvement in the Panama Canal dates back to 2016, when a Chinese vessel owned by COSCO first crossed the expanded waterway. Landbridge Group acquired control of Margarita Island, Panama’s largest port on the Atlantic side, that same year in a deal estimated at around US$900 million.

Chinese interests expanded further in 2018 through a consortium led by the China Harbour Engineering Company and the China Communications Construction Company to construct the canal’s fourth bridge.

With an estimated $1.4 billion contract at the time, the transaction was deemed “the fifth most important project in the history of the country” by then-president Juan Carlos Varela.

In addition, a subsidiary of Hong Kong-based CK Hutchison Holdings manages two ports located on the Atlantic and Pacific entrances to the canal, respectively.

“China’s interest in and presence around the canal is a cause for concern. America must project strength abroad – owning and operating the Panama Canal might be an important step towards a stronger America and a more secure globe,” Representative Dusty Johnson, a South Dakota Republican and one of the co-authors of the purchase authorisation bill said in a statement last week.

Rubio tied the issue to what he described as “the defining challenge of the 21st century” – countering China’s growing influence globally.

He also condemned Beijing’s “violation” of Hong Kong’s autonomy, which he said had transformed the financial hub into a “tool for advancing China’s interests.”

The Florida Republican accused China of breaking promises made under the 1997 handover agreement with the United Kingdom, adding that Hong Kong’s sweeping national security law has rendered it an inhospitable environment for international business.

“I think we have to call it for what it is: the notion that Hong Kong is now a semi-autonomous entity that operates within China’s system,” Rubio noted. “Its independence for the decisions they make, is a complete work of fiction.”

He also called for reducing America’s dependence on China for raw materials and medicine, and emphasised the need to counter Beijing’s more aggressive naval activities in the South China Sea, saying that while the One China policy has been respected across several administrations, but also stressed the importance of “national defence” in the Taiwan Relations Act.

“We’re not going to pressure Taiwan in any arrangement … We make no commitment to not helping them in their national defence … And frankly, we are going to do everything [to] reject any effort to coerce, intimidate and/or forcibly drive Taiwan to do whatever China wants them to do,” Rubio promised.

Like most other Western countries, the US does not recognise Taiwan as an independent country, though Washington is committed by the law to support the self-governing island’s defence capability.

The senator said he does not intend to change Taiwan’s status, but will advocate for Taiwanese participation in international organisations. He also warned Beijing about recent military escalation in the region.

“If [the Chinese] want to stabilise the relationship [with the US], they need to stop messing around with Taiwan and the Philippines,” Rubio said.

The testimony highlighted his well-established reputation as a China hawk. As a senator since 2011 and a member of both the Foreign Relations and Intelligence Committees, the 53-year-old Floridian has consistently opposed Beijing’s policies.

Throughout his Senate career, Rubio has been a staunch critic of China’s human rights record. He co-sponsored the Hong Kong Human Rights and Democracy Act of 2019, which sanctioned officials responsible for undermining the city’s autonomy, and the Uygur Forced Labour Prevention Act in 2021, targeting imports tied to forced labour in Xinjiang.

Following Beijing’s passage of the Hong Kong national security law in 2020, Rubio also championed the Hong Kong Autonomy Act. The legislation sanctioned officials from mainland China and Hong Kong over their alleged roles in undermining the city’s autonomy under the Basic Law.

Rubio’s work on these issues earned him a spot on Beijing’s sanctions list in 2020, one of 11 US citizens targeted, including lawmakers Senator Ted Cruz of Texas and Representative Chris Smith of New Jersey, both Republicans. At the time, China’s Foreign Ministry accused the group of “egregious behaviour” concerning Hong Kong.

Despite being sanctioned – a move that prevents him from travelling to Beijing – Rubio said in a December interview with Voice of America that he is confident in his ability to “find some solution” for engaging with the Chinese if confirmed by the Senate.

His confirmation hearing was one of six held on Wednesday for president-elect Trump’s nominees. Among the other contenders were former Florida attorney general Pam Bondi for US attorney general, fracking executive Chris Wright for energy secretary, and John Ratcliffe, the former director of national intelligence, for CIA director.

Space version of China’s NearLink wireless module ‘cuts latency to microseconds’

https://www.scmp.com/news/china/science/article/3294872/space-version-chinas-nearlink-wireless-module-cuts-latency-microseconds?utm_source=rss_feed

Chinese scientists have sent the world’s most powerful wireless communication protocol into space, slashing transmission delays from milliseconds to microseconds.

A space version of China’s NearLink or “Xing Shan” wireless communication module for rockets had successfully completed a test flight, the China Academy of Launch Vehicle Technology (CALT) announced in a social media post last week.

Originally proposed in 2020 by China’s “Xing Shan Alliance” of tech and telecoms experts, the technology is a short-range communication solution that aims to replace Bluetooth. It offers advantages such as low latency or transmission delays, high speed, and resistance to interference.

This space version, dubbed “Aerospace NearLink”, was developed by Beijing Aerospace Wanyuan Science & Technology, a subsidiary of state-owned China Aerospace Corporation (CASC).

The innovation is expected to significantly reduce the weight of heavy rockets and lower launch costs.

The research team said they had sharpened its communication range and stability to meet the specific demands of space applications – to create an aerospace version that enabled wireless, cable-free network access on rockets.

“On a heavy-lift rocket, the cable network can weigh up to 500kg (1,100lbs) – about the same as three ‘Yutu’ lunar rovers,” Wang Hao, the research and development lead at Wanyuan, said in a company report last month. “Replacing these cables with wireless technology would save space and reduce the payload, significantly lowering launch costs.”

Although in theory a cable-free rocket system has many advantages, it has yet to be actually applied. Yang Jialin, an R&D team member, noted that the key challenges were ensuring both autonomy and security for Chinese aerospace technology.

“Previously, China lacked a short-range wireless communication standard, and technologies like Wi-fi or Bluetooth would require external devices for signal encryption, which would introduce latency, limiting their practical use,” she said.

The Xing Shan technology is fully indigenous – with both the protocol and chips developed by Chinese companies, allowing for a completely domestic and controllable system.

The Xing Shan Alliance includes major players such as the China Academy of Information and Communications Technology, the China Automotive Technology and Research Centre, telecoms service provider China Mobile and tech giant Huawei.

In August 2023, Huawei incorporated this technology into its Mate 60 smartphone and introduced supporting products like earphones and stylus pens. Other companies such as ThundeRobot and Darmoshark have also launched low-latency peripherals such as wireless mice and keyboards that support Xing Shan technology.

The R&D team at Wanyuan began their project in September 2023, and achieved both extended communication range and resistance to interference in just about a year.

While traditional Xing Shan technology has a range of only 30 metres (98 feet), antenna and frequency design optimisations increased this to 250 metres.

Under the extreme conditions of space, such as huge temperature differences and fluctuations, shocks, vibration, and electromagnetic interference, the traditional Xing Shan module experienced a packet – or data –loss rate of up to 1.58 per cent. The new version developed by the team reduced this rate to below 0.01 per cent.

According to the company report, the Xing Shan aerospace technology leads in multiple areas, including power consumption, speed, coverage, and transmission reliability.

“Its transmission latency is just one-30th of traditional wireless technologies, offering 30 times the interaction capacity in the same amount of time – shifting from millisecond to microsecond speeds. Moreover, it uses only 60 per cent of the power consumed by previous technologies,” the report said.

As a foundational technology, the hardware specifics of the Xing Shan aerospace technology and its future applications remain unclear.

The South China Morning Post has contacted Wanyuan Aerospace for comment.

China unveils ‘Crimson Skyblade’ in nuclear fusion quest for unlimited clean energy

https://www.scmp.com/news/china/science/article/3294906/china-unveils-crimson-skyblade-nuclear-fusion-quest-unlimited-clean-energy?utm_source=rss_feed

One of the scientific teams helping to develop a Chinese nuclear fusion reactor capable of producing unlimited power has unveiled a device they say will be key to testing whether the facility can withstand the intense flows of plasma produced during fusion.

Chi Xiao, or “Crimson Skyblade”, is a superconducting linear plasma device that is intended to help scientists test building materials for use in a fusion reactor, according to a panel of experts who introduced the device on Tuesday.

Experiments are under way at the Hefei-based Experimental Advanced Superconducting Tokamak (EAST) facility to mimic the sun’s fusion reactions to produce light and heat.

But building a nuclear fusion reactor is a formidable challenge that will require fortified walls made of special materials that can survive out-of-this-world conditions.

“Developing wall materials that are both resilient and resistant to damage is extremely difficult. To test such materials, we need advanced simulation environments,” said project leader Professor Zhou Haishan, with the Hefei Institutes of Physical Science, at the Chinese Academy of Sciences.

His team spent more than five years developing the powerful linear plasma device. At a length of 15.5 metres (51 feet) and a weight of about 22.5 tonnes, it features a streamlined structure resembling a sword, and can continuously generate plasma that is propelled at high speeds using magnetic fields.

“This device can eject ... the equivalent [of] billions of billions of millions of particles. It can operate continuously for more than 24 hours,” Zhou said.

Chi Xiao, draws inspiration from a legendary Chinese sword associated with Emperor Gaozu, founder of the Han dynasty, who reigned from 202 to 195BC.

“Chi”, or bright red, symbolises auspiciousness and authority, while “Xiao” represents the vastness of the sky, reflecting the grandeur and limitless potential of the device.

Professor Ye Minyou, head of the review panel, and a professor at the University of Science and Technology of China, said China was now the second country after the Netherlands to have such a device, with Crimson Skyblade surpassing the performance of its predecessor.

China’s strides in nuclear fusion have positioned it as a world leader in some areas, due in large part to its rapid pace of development. According to an article in the journal Nature in August last year, China’s annual investment in nuclear fusion research was estimated to reach US$1.5 billion – nearly twice the amount of annual US government funding in the field.

China is at the forefront of nuclear fusion research, playing an essential role in the International Thermonuclear Experimental Reactor project, the world’s largest fusion reactor now under construction in France.

Plans are also in place for the domestically developed China Fusion Engineering Test Reactor, which will produce a massive quantity of heat with a peak power output of up to 2 gigawatts.

The project is expected to be online for large-scale scientific experiments by 2035, with commercial use targeted for 2050.

“Crimson Skyblade will provide critical support for China’s next-generation ‘artificial sun’ project. Not only will the device serve Chinese scientists, but it will also facilitate international cooperative research, which will be open to global contributions,” state news agency Xinhua reported.

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CIA director nominee vows to increase focus on China and emerging technologies

https://www.scmp.com/news/us/us-elections/article/3294935/cia-director-nominee-vows-increase-focus-china-and-emerging-technologies?utm_source=rss_feed

John Ratcliffe, US president-elect Donald Trump’s nominee for director of the CIA, pledged on Wednesday that, should he be approved to lead the spy agency, he would intensify its focus on China and emerging technologies.

Ratcliffe, who served as director of national intelligence (DNI) during Trump’s first term, told the Senate Intelligence Committee during his confirmation hearing that the US faced “what may be the most challenging national security environment in our nation’s history” – including threats from China, the Russia-Ukraine war and its risk of nuclear war, Iran and North Korea as well as “increasing coordination among America’s rivals”.

Beijing’s advances in emerging technologies like AI and quantum computing had empowered what he called “ubiquitous technical surveillance” in China, posing “unprecedented challenges” for the Central Intelligence Agency in gathering information.

Ratcliffe said that the agency had “struggled to keep pace” with technological innovation, and that there was a need for it to expand with the private sector to maintain an edge in emerging technologies.

“As a target, technology is more important than ever, whether it’s understanding our adversaries’ capabilities in AI and quantum computing, or their developments in hypersonics and emerging space technologies, or their innovations in counter-intelligence and surveillance,” he said.

Ratcliffe did not explain how he might improve intelligence collection during nearly two hours of public questioning, before the committee moved the hearing behind closed doors to discuss matters of sensitive or classified intelligence.

Ratcliffe’s questioning was one of a half-dozen confirmation hearings for Trump nominees on Wednesday, along with Senator Marco Rubio for secretary of state; former Florida attorney general Pam Bondi for US attorney general; fracking executive Chris Wright for energy secretary; former US representative Sean Duffy for transportation secretary; and Project 2025 figure Russell Vought for director of the Office of Management and Budget.

Unlike Pete Hegseth, Trump’s nominee for defence secretary, who faced tough questioning during his confirmation hearing on Tuesday, Ratcliffe had a fairly smooth session.

He seemed to win over Republican lawmakers because of his experience as DNI in the last months of Trump’s first administration.

And answering Democrats who asked whether his loyalty to Trump would impede his administration of the agency, Ratcliffe touted his “record in terms of speaking truth to power” and said he would resist any efforts to fire employees for their supposed political views.

Ratcliffe also said he would continue the “good work” of the current director William Burns, under whose leadership the CIA created two new mission centres in 2021 to formalise the agency’s focus on China and on emerging technology.

However, more needed to be done to counter threats from China and Russia in the great power rivalry, he added.

“This is our once-in-a-generation challenge,” Ratcliffe said. “The intelligence is clear. Our response must be clear as well.”

He also promised to strengthen US deterrence to the cybersecurity threat China posed. Beijing has rejected accusations that it has conducted hacking activities against US telecommunications and other government networks.

“The deterrent effect has to be that there are consequences to our adversaries when they do that,” he said.

He added that he hoped to prioritise resources to develop tools he said would be “necessary to go on offence against our adversaries in the cyber means”.

Ratcliffe, 59, was a US representative from Texas before becoming DNI from May 2020 to January 2021, making him one of the few national security officials to return from Trump’s first administration.

Ratcliffe was not the only nominee on Wednesday to express alarm about Beijing’s role within the US. When Wright, the energy secretary candidate, was asked by Senator Tom Cotton of Arkansas about taking steps to prevent Department of Energy national labs and other sensitive facilities from being compromised by adversaries like China, he said he agreed with the “gravity of the threat and the need to address it”.

Cotton said that more than 8,000 Chinese and Russian citizens had been granted access to DOE national labs in the 2023 fiscal year – a fact highlighted in a Senate bill last year that aimed to restrict nationals of China, Russia, and three other countries, from accessing the labs.

The Department of Energy had previously pushed back against the restrictions, arguing that they would have a “significant impact” on its work.

If US shores up defence against China shipbuilding threat, what could really happen?

https://www.scmp.com/economy/global-economy/article/3294895/if-us-shores-defence-against-china-shipbuilding-threat-what-could-really-happen?utm_source=rss_feed

Targeted action by Washington against Chinese shipbuilders in the waning days of Joe Biden’s presidency could offer a slight boost to South Korean rivals, but the impact may be very limited due to China’s overwhelming market dominance and strong backlog of orders, according to analysts and industry insiders.

The Office of the US Trade Representative’s months-long investigation into China’s shipbuilding and maritime industry has reportedly concluded that China has employed unfair policies and practices to establish dominance in the sector, Reuters said on Tuesday, citing anonymous sources.

The development, while not yet confirmed nor denied by the US, comes amid intensifying competition between the world’s two largest economies, as well as Washington’s efforts to rally more allies in a bid to decrease dependence on Chinese manufacturing and supply chains.

Asian yards, including those from South Korea and Japan, could benefit if the investigation results in penalties being imposed on China’s shipbuilders. Nevertheless, analysts and an executive from a major Chinese shipbuilding company said that the substantial scale of China’s shipbuilding industry and its cost advantages are too strong to significantly undermine.

James Chin, a professor of Asian studies at the University of Tasmania in Australia, said Chinese shipbuilders are safe in the near term – up to roughly 24 months – from any measures that the US might take.

“The orders are huge,” Chin noted. “They have long, long orders. They’ve overtaken the Japanese and the Koreans and everyone under the sun.”

And Nick Marro, principal economist for Asia at the Economist Intelligence Unit, said that, in the short term, demand for upgrades to existing ships could help China weather any US measures against it.

China has been the world’s largest shipbuilder for more than a decade. In 2024, China won 70 per cent of the world’s newbuilding orders, followed by South Korea with 17 per cent and Japan with 5 per cent, according to an annual report from shipping-data provider Clarksons Research.

Additionally, China “achieved market-leading positions in all main sectors, aside from gas”, the report said.

South Korean shipyards may benefit from the US strategy. Still, it would be impossible to supplant China, considering the production gap between the two countries, especially for container ships, in which China dominates with overwhelming newbuilding orders, said the Chinese shipbuilder’s executive, who declined to be named due to company policy.

Meanwhile, if US support leads to more orders, South Korean shipbuilders may increase their prices, which could benefit the entire industry, he noted.

Washington’s typical response to “unfair competition”, under what is known as a Section 301 investigation – after the relevant portions of the 1974 Trade Act – is to impose tariffs, quotas or other trade restrictions.

It is unclear what measures, if any, the US will adopt. US labour unions that requested the 301 investigation by the US trade representative suggested imposing additional port fees on Chinese-built ships calling at US ports.

Port charges on newbuildings would reduce the cost advantage for Chinese shipbuilders, as shipowners and charterers are likely to include these expenses in their calculations.

“Shipowners have prepared for that,” the executive said. “They could assign vessels constructed by other countries to the routes to the US while using China-built vessels for other routes.

“So, overall, we are not overly concerned.”

Song Seng Wun, an economic adviser at the Singapore-based financial services firm CGS, said it is possible that the US government wants to hamper China so Japanese and Korean yards could have time to catch up. However, he said, the impact would not be big.

“We’re talking about very expensive seagoing vessels. If you don’t want the Chinese to build them, who’s going to do it,” Song asked. “You can say we have Koreans and Japanese – basically the Asian yards. At this point, the Chinese shipbuilders are way ahead. Fast and cost-effective.”

With its domestic shipbuilding capabilities lagging behind, the US has been looking to tap its shipbuilding allies to compete with China.

“We don’t build ships any more,” US president-elect Donald Trump said in a radio interview last week. “We want to get that started. And maybe we’ll use allies, also, in terms of building ships. We might have to.”

And two months before the 301 investigation was launched in April, US Secretary of the Navy Carlos Del Toro visited major shipyards in South Korea and Japan with expectations that the two allies could lend a hand in reviving US maritime power.

In a 2023 speech, Del Toro announced his objective to “attract the most advanced shipbuilders in the world to open US-owned subsidiaries and invest in commercial shipyards here in the US”.

Regarding the US’ aim to bring shipbuilding back home, the shipbuilding executive expressed doubts about its feasibility, as the substantial cost gap would render the construction of commercial vessels in the US commercially unviable.

“No overseas purchase of large US-built ships has occurred in decades, because US-built ships can be four or more times the world price,” John Frittelli, a specialist in transport policy with the US Congressional Research Service, a public policy research institute of the US Congress, said in a note in late 2023.

The note pointed out that, in the previous several years, the US built only five or fewer large ocean-going ships annually, while China built more than 1,000 vessels each year.