• Rishi Sunak considers banning Chinese officials from half of AI summit
• China’s push to create a single national identity | China
• What will halt China’s rolling property crisis? | Podcasts
• Chinese defence minister under investigation for corrupt procurement
• China defence minister under investigation, being removed from post - western media
• China sanctions Northrop Grumman, Lockheed Martin over arms sales to Taiwan
• [World] Li Shangfu: Top US envoy questions China defence minister’s absence
• China defence minister under investigation, being removed from post - media
• U.S. diplomat questions whether Chinese defence minister is under “house arrest“
• China newspaper says EU probe into EVs “excessive“, sparked by “jealousy“
• U.S. diplomat questions whether Chinese defence minister under “house arrest“
• China August industrial output, retail sales growth beat expectations
• Li Shangfu: speculation grows over fate of China’s missing defence minister
• China’s defense minister under investigation for corruption
• GOP lawmakers call for heavier sanctions against China’s Huawei, SMIC

Rishi Sunak considers banning Chinese officials from half of AI summit

https://www.theguardian.com/technology/2023/sep/15/rishi-sunak-considers-banning-chinese-officials-from-half-of-ai-summit

Rishi Sunak is considering banning Chinese officials from half of his artificial intelligence safety summit in November, amid growing concern over widespread spying by Beijing on western governments.

Downing Street has already invited China to attend the summit, which will be held in early November at Bletchley Park and is set to shape the international community’s approach to AI for years to come.

The invitation has attracted some criticism in the wake of recent revelations that a parliamentary researcher was arrested earlier this year on suspicion of spying for China. Sources have told the Guardian that Chinese officials might only be allowed to attend the first day of the two-day summit in part because of concern over their espionage activities – although not directly as a result of the arrest.

Other world leaders expected to attend the full summit, those close to the planning process said, include the French president Emmanuel Macron, the Canadian prime minister, Justin Trudeau and Ursula von der Leyen, the president of the European Commission.

Joe Biden, the US president, is not due to attend and will be represented instead by his vice-president, Kamala Harris.

One person with knowledge of the plans said: “We always knew Biden was unlikely to attend, but the question Downing Street now has to decide is what to do about the Chinese.”

A government spokesperson said: “The UK will host the first major global summit on AI safety this November, bringing together key countries, as well as leading companies and researchers, and civil society, to drive targeted, rapid international action on the safe and responsible development of the technology.”

The spokesperson added: “As is routine for summits of this nature, we won’t speculate on potential invitees.”

Sunak announced the summit in June, following warnings from some of those at the top of the AI industry that the technology could be used for misinformation and fraud and could even pose a future threat to all humanity.

The prime minister, who completed an MBA at Stanford University in California and is well connected in technology circles, hopes to position the UK at the forefront of global AI regulation.

He has expressed excitement about AI’s potential to transform public services, for example, by helping doctors diagnose conditions, but also says he wants to develop “guardrails” to prevent it being exploited in destructive ways.

Those aware of the summit’s proposed schedule say it will focus on the risks AI poses to human life, amid concerns that it could be used by states or even individuals to accelerate the development of biohazards and bioweapons. Officials hope the summit will become an annual or biennial event, hosted by another country each time in the mould of the G7, G20 or CoP gatherings.

Those invited will include heads of government, tech industry executives and representatives of civil society. Sir Nick Clegg, the former deputy prime minister, is expected to attend in his role as president of global affairs for Meta, Facebook’s parent company. It is not clear yet whether Mark Zuckerberg, the company’s founder, will be there.

Elon Musk, the technology entrepreneur and world’s richest man, may also come, although officials pointed out that none of his companies are yet global leaders in AI development.

The invitation to Beijing has been one of the most sensitive elements of planning the summit. Sunak has talked about the importance of engaging with Beijing, and recently met the Chinese premier Li Qiang on the sidelines of the G20 in Delhi, where the pair discussed AI among other issues.

British officials have been exploring the option of inviting China to only one of the two days, as intelligence experts ramp up their warnings that the country is carrying out extensive spying in the UK and elsewhere. Last weekend it emerged that a parliamentary researcher had been arrested on suspicion of spying for Beijing – although sources said the debate over only inviting China to one day of the AI summit was not connected to those revelations.

Downing Street must also navigate a number of other tricky issues, including where to house Harris and her large travelling delegation. Bletchley Park is an hour and a half by car from central London, where an American delegation would normally stay during a bilateral visit.

Officials are planning to erect several marquees in the grounds of the estate to host all the events planned over the two days.

Additional reporting by Lisa O’Carroll in Brussels

---

China’s push to create a single national identity | China

https://www.economist.com/china/2023/09/14/chinas-push-to-create-a-single-national-identity

THE STREET signs in Inner Mongolia, a region in northern China, are written in two languages. There are the blocky characters of Mandarin, the mother tongue of most Chinese. Then there is the vertically-written script of Mongolian, which is spoken by many people in the region. The language is not just seen on signs; it is heard in cafés and used in classrooms (such as the one pictured). More Mongols live in Inner Mongolia than in Mongolia, the country next door.

But the Mongolian language is dying in China, say activists, and not of natural causes. Three years ago the central government told schools in Inner Mongolia to replace the language with Mandarin when teaching some subjects. That sparked protests, but a year later China’s legislature went further, annulling regulations that allowed autonomous regions to teach in minority languages. Today, kindergartens in Inner Mongolia are taught entirely in Mandarin and, according to locals, an increasing number of other classes are, too.

The decline of Mongolian is part of a years-long push by the central government to assimilate ethnic minorities across China. Officially, such groups are meant to have equal standing with the Han, the ethnic group that makes up over 90% of the mainland’s population. In practice, the Han (who often speak Mandarin) dominate and other groups are marginalised. “They don’t want minorities to be too distinctive,” says a 25-year-old Mongol in the Inner Mongolian city of Tongliao. “To be blunt, they want to turn us into Han.”

One nation, under the party

Minority groups are still allowed to celebrate aspects of their culture, such as traditional dress and dancing. Officials are fond of pointing out that China’s bank notes feature scripts of minority languages, as well as standard Chinese characters. But all of this is presented as part of a singular national identity, upon which the strongest influence, by far, is Han. The authorities promote this identity using television shows, picture books and exhibitions. One at the Cultural Palace of Nationalities in Beijing showcases relics from the Han and other ethnic groups. It claims that the “grand fusion” of the Chinese nation can be traced back to the Stone Age.

The government justifies its treatment of ethnic minorities on various grounds. Officials argue that learning Mandarin will help people in these groups to obtain jobs. By inculcating a national identity in the population, officials hope to improve social stability. In some areas, though, this campaign has been accompanied by official brutality. Xinjiang is the prime example. Since 2017 perhaps a million Uyghurs and other ethnic minorities in the region have been forced to spend time in “re-education camps”. This has been necessary in order to stamp out terrorism and separatism, says the government. Critics accuse it of trying to wipe out the Uyghur culture.

There have been ethnic tensions in Inner Mongolia, too. Mongols and Han have tussled over the use of grasslands, for example. But, generally speaking, the region is more stable than Xinjiang or Tibet. The Communist Party has long called Inner Mongolia a model of good ethnic relations. Inter-marriage between groups is common. Many young Mongols speak Mandarin as fluently as they do their native tongue. The region is not heavy on religions that the central government deems suspect, such as Islam. And there is no serious separatist movement.

So even members of the Han ethnic group have been surprised by the government’s heavy-handed actions in Inner Mongolia. “We have no idea who is giving these orders,” says a Han woman in Tongliao. “What good are they for the common people?” She is proud of the fact that China is culturally diverse. Senior officials in Beijing appear less so. ■

Subscribers can sign up to Drum Tower, our new weekly newsletter, to understand what the world makes of China—and what China makes of the world.

What will halt China’s rolling property crisis? | Podcasts

https://www.economist.com/podcasts/2023/09/14/what-will-halt-chinas-rolling-property-crisis

Thousands of building projects across China have been halted or dramatically slowed as a rolling crisis engulfs the country’s property sector. The government’s “three red lines” policy sought to limit the leverage of property developers, but has now forced scores of them into default and restructuring. Confidence in the market has evaporated. And in a country where people buy their homes in advance, long before they are built, that wave of worry has sent sales tumbling.

On this week’s podcast, hosts Mike Bird, Alice Fulwood, and Tom Lee-Devlin ask whether there is an end in sight to China’s growing property woes. The Economist’s Don Weinland takes a trip to Zhangzhou to examine what went wrong. Long-time China-watcher Anne Stevenson-Yang explains why real estate looms so large over China’s economy and Beijing-based property analyst Rosealea Yao explains what it would take to bring the crisis to an end. Runtime: 43 min

Sign up for Economist Podcasts+ now and get 50% off your subscription with our limited time offer: www.economist.com/podcastsplus-moneytalks

You will not be charged until Economist Podcasts+ launches.

If you’re already a subscriber to The Economist, you’ll have full access to all our shows as part of your subscription.

For more information about Economist Podcasts+, including how to get access, please visit our FAQs page

Listen on: Apple Podcasts | Spotify | Google | Stitcher | TuneIn

Chinese defence minister under investigation for corrupt procurement

https://reuters.com/article/china-politics-defence-minister/exclusive-chinese-defence-minister-under-investigation-for-corrupt-procurement-idUSKBN30L071

Defence Minister Li Shangfu, who has been missing from public view for more than two weeks, has been placed under investigation by Chinese authorities, according to 10 people familiar with the matter.

The investigation into Li relates to procurement of military equipment, according to a regional security official and three people in direct contact with the Chinese military. Reuters was unable to obtain details on which equipment purchases were under scrutiny.

Eight senior officials from the Chinese military's procurement unit, which Li led from 2017 to 2022, are also under investigation, according to two of the people in direct contact with the military.

The probe into Li, who was appointed as defence minister in March, and the eight officials is being carried out by the military's powerful disciplinary inspection commission, those two people said.

Reuters' detailed examination of the allegations against Li and the timing of the probe is based on interviews with sources who interact regularly with senior Chinese political and defence leaders, and regional officials with close knowledge of Chinese politics.

A Chinese Foreign Ministry spokeswoman told reporters Friday that she was not aware of the situation. The State Council and the Defence Ministry did not immediately return requests for comment. Li could not immediately be reached.

The Financial Times reported on Friday, citing U.S. officials, that the U.S. government believes Li has been placed under investigation. The Wall Street Journal cited a person close to decision making in Beijing as saying he had been taken away last week for questioning.

The U.S. State Department didn't immediately respond to a request for comment on the media reports that U.S. intelligence officials believed Li was under investigation for corruption.

U.S. Ambassador to Japan Rahm Emanuel on Friday posed the question on X, formerly Twitter, whether Li was under house arrest. The U.S. embassy in Tokyo did not immediately have further comment.

Li was last seen in Beijing on Aug. 29 giving a key-note speech at a security forum with African nations. Earlier that month, he also visited Russia and Belarus.

The probe into the minister started shortly after his return from that trip, according to a person in direct contact with the military and two foreign security officials briefed on the case.

By Sept. 3, his ministry had cancelled a visit by Li to Vietnam for an annual defence meeting between the two countries scheduled for Sept. 7-8, according to a Vietnamese official. Beijing told officials in Hanoi that Li had a "health condition" when it postponed the event, two Vietnamese officials said.

Li's failure to attend that meeting, and talks with a senior Singaporean military official in China the same week, raised questions among regional diplomats and social media users about his whereabouts.

The probe into Li follows China's unexplained replacement of Foreign Minister Qin Gang in July after a prolonged absence from public view and a shake-up of the leadership of the People's Liberation Army's elite Rocket Force, which is responsible for conventional and nuclear missiles. Chinese officials initially said Qin's absence was also due to health reasons.

The moves have raised questions from some observers and diplomats about the abrupt changes in China's leadership at a time when its economy is struggling to recover from strict pandemic closures and its relations with the United States have further soured over a range of issues.

Both Li and Qin were seen by observers ok Chinese politics as handpicked by President Xi Jinping, making their absence after less than a year on the job particularly notable. The two men had prominent public-facing roles and also serve among China's five state councillors, a post outranking a regular minister.

In July, the military's procurement unit took the highly unusual step of issuing a notice that it was looking to "clean-up" its bidding process. It invited the public to report irregularities dating back to Oct. 2017, when Li was at its helm. He ran the unit until October 2022.

When asked last month by reporters to comment about the whereabouts of two other former senior military leaders who had not been recently seen in public and if they were under investigation, a Defence Ministry spokesman said the military has "zero-tolerance for corruption", without denying the possibility that they were the subject of a probe.

"We must always blow the horn, investigate every case, punish every instance of corruption and resolutely win the hard and protracted battle against corruption," the spokesman said.

In 2016, Li was named deputy commander of the military's then-new Strategic Support Force - an elite body tasked with accelerating the development of space and cyber warfare capabilities. He was then tasked the following year with heading the military's procurement unit.

Li was sanctioned by the U.S. in 2018 over weapons purchases from Russia's largest arms exporter, Rosoboronexport.

Beijing has repeatedly said it wants those sanctions dropped to facilitate better discussions between the Chinese and U.S. militaries. U.S. Defence Secretary Lloyd Austin sought talks with Li during a defence conference in Singapore in June, but did not get beyond pleasantries, according to a Pentagon spokesman.

---

China defence minister under investigation, being removed from post - western media

https://reuters.com/article/china-politics-defence-minister/china-defence-minister-under-investigation-being-removed-from-post-western-media-idUSKBN30L071

Suspicion over the unexplained weeks-long absence of Chinese Defence Minister Li Shangfu deepened on Friday, as leading western newspapers reported he was subject to a probe and a top U.S. diplomat questioned whether he was under house arrest.

Li, 65, has missed meetings with Vietnamese and Singaporean defence leaders in recent weeks, according to sources with direct knowledge of the engagements. He was last seen in Beijing on Aug. 29 delivering a keynote address at a security forum with African nations.

Citing U.S. officials, the Washington Post reported Li was under investigation for corruption and will likely be removed from his post. The Wall Street Journal also reported Li was being removed from office while the Financial Times earlier said the U.S. government believes Li is under investigation.

Rahm Emanuel, Washington's outspoken ambassador to Japan, wrote in a post on X: "1st: Defense Minister Li Shangfu hasn't been seen or heard from in 3 weeks. 2nd: He was a no-show for his trip to Vietnam. Now: He’s absent from his scheduled meeting with the Singaporean Chief of Navy because he was placed on house arrest???"

China's defence ministry did not immediately respond to requests for comment. The U.S. embassy in Tokyo said it did not have immediate further comment.

Asked whether Li was under investigation, foreign ministry spokesperson Mao Ning told reporters at a daily news conference that she was "not aware of the relevant information".

Li's absence follows China's unexplained replacement of its foreign minister, Qin Gang, in July after a prolonged period out of public view and a shake-up of the leadership of the People's Liberation Army's elite Rocket Force in recent months.

Like Li, Qin is one of China's five state councillors, a cabinet position that ranks higher than a regular minister.

The moves have raised questions from analysts and diplomats about a lack of transparency in China's leadership at a time when its economy is slowing and its relations with rival superpower the United States have soured over a range of issues.

Ja Ian Chong, a scholar at the National University of Singapore, said the lack of clarity surrounding Li further underlined uncertainty over China's decision-making.

"The range of speculation demonstrates the high uncertainty of the PRC (People's Republic of China) system at present," he said.

Emanuel, a gregarious diplomat who served as a top aide to former U.S. President Barack Obama, has hit the headlines for a series of fiery posts directed at China in recent weeks.

The ambassador first posted about Li's public absence last Friday, stirring speculation over his whereabouts. Asked why Emanuel had weighed in on the issue, U.S. State Department spokesperson Matthew Miller said the ambassador "throughout his career has spoken in a colorful manner".

The Singapore meeting Emanuel appeared to reference in his latest post was a visit to China by the Singapore Navy's Rear Admiral Sean Wat.

During the Sept. 4-9 trip, Wat met with China's navy commander, Dong Jun and other navy leaders, Singapore's defence ministry said on its website. Two sources familiar with the matter said Wat had also been expected to meet with Li.

One of the sources, an official with direct knowledge of the plans, said Wat was scheduled to meet with Li on Sept. 5 in Beijing but "it didn’t happen", without elaborating.

Singapore's defence ministry did not immediately respond to a request for comment.

Li also abruptly pulled out of a meeting with Vietnamese defence leaders scheduled for Sept. 7-8, Reuters exclusively reported on Thursday.

Military observers and diplomats are closely watching whether China will go ahead with plans to hold the Beijing Xiangshan Forum - an annual international security summit normally hosted by China's defence minister - in late October.

Before Li was appointed to his post in March, he had led the military's procurement unit.

In a rare notice in July, the unit said it was looking to "clean up" its bidding process and invited the public to report irregularities dating back to 2017. There has been no update on possible findings.

Li's absence is being particularly closely watched by the United States, which has not dropped sanctions imposed on him in 2018 for buying weapons from Russia's largest arms exporter, Rosoboronexport.

Chinese officials have repeatedly said they want those sanctions dropped to facilitate better discussions between the two sides' militaries. U.S. Defence Secretary Lloyd Austin attempted talks with Li during a defence conference in Singapore in June, but did not get beyond a handshake.

Wen-Ti Sung, a political scientist at the Australian National University, said that although Li had been a "roadblock" in U.S.-China military relations, his unexplained absence is problematic for China's international relations in other ways.

"Other countries will be wondering something as basic as whose number to call when they want to set up military dialogues with China," he said.

---

China sanctions Northrop Grumman, Lockheed Martin over arms sales to Taiwan

https://reuters.com/article/china-usa-taiwan-northrup-lockheed/china-sanctions-northrop-grumman-lockheed-martin-over-arms-sales-to-taiwan-idUSKBN30L0FS

China has decided to apply sanctions against aerospace and defence firm Northrop Grumman Corp (NOC.N) and peer Lockheed Martin Corp (LMT.N) for providing weapons to Taiwan, the Chinese foreign ministry said on Friday.

China urged the United States to cease military liaisons with and stop arming Taiwan, or else the U.S. will be subject to "a resolute and forceful retaliation" by the Chinese side, ministry spokesperson Mao Ning said at a regular press briefing.

Mao named firm Lockheed Martin Corp's branch in Missouri as the prime contractor that was directly involved in an arms sale to Taiwan on Aug. 24 and said Northrop Grumman has repeatedly participated in the sale of weapons to Taiwan.

[World] Li Shangfu: Top US envoy questions China defence minister’s absence

https://www.bbc.co.uk/news/world-asia-china-66817348?at_medium=RSS&at_campaign=KARANGA

China defence minister under investigation, being removed from post - media

https://reuters.com/article/china-politics-defence-minister/china-defence-minister-under-investigation-being-removed-from-post-media-idUSKBN30L071

Suspicion over the unexplained weeks-long absence of Chinese Defence Minister Li Shangfu deepened on Friday, as some media reported he was subject to a probe and a top U.S. diplomat questioned whether he had been placed under house arrest.

Li, 65, has missed meetings with Vietnamese and Singaporean defence leaders in recent weeks, according to sources with direct knowledge of the engagements. He was last seen in Beijing on Aug. 29 delivering a keynote address at a security forum with African nations.

The U.S. government believes Li has been placed under investigation, the Financial Times reported on Friday, citing U.S. officials. The Wall Street Journal reported he had been taken away last week for questioning and removed from his post.

Neither report stated the reasons behind the investigation.

Rahm Emanuel, Washington's outspoken ambassador to Japan, wrote in a post on X: "1st: Defense Minister Li Shangfu hasn't been seen or heard from in 3 weeks. 2nd: He was a no-show for his trip to Vietnam. Now: He’s absent from his scheduled meeting with the Singaporean Chief of Navy because he was placed on house arrest???"

China's defence ministry did not immediately respond to requests for comment. The U.S. embassy in Tokyo said it did not have immediate further comment.

Asked whether Li was under investigation, foreign ministry spokesperson Mao Ning said she was "not aware of the relevant information".

Li's absence follows China's unexplained replacement of its foreign minister, Qin Gang, in July after a prolonged period out of public view and a shake-up of the leadership of the People's Liberation Army's elite Rocket Force in recent months.

Like Li, Qin is one of China's five state councillors, a cabinet position that ranks higher than a regular minister.

The moves have raised questions from analysts and diplomats about a lack of transparency in China's leadership at a time when its economy is slowing and its relations with rival superpower the United States have soured over a range of issues.

Emanuel, a gregarious and outspoken diplomat who served as a top aide to former U.S. President Barack Obama, has hit the headlines for a series of fiery posts directed at China in recent weeks.

He first posted about Li's public absence last Friday, fuelling a swirl of speculation on his whereabouts. Asked why Emanuel had weighed in on the issue, U.S. State Department spokesperson Matthew Miller said the ambassador "throughout his career has spoken in a colorful manner".

The Singapore meeting Emanuel appeared to reference in his latest post was a visit by the Singapore Navy's Rear Admiral Sean Wat to China from Sept. 4-9.

On the trip, Wat met with China's navy commander, Dong Jun and other navy leaders, Singapore's defence ministry said on its website. Two sources familiar with the matter said Wat had also been expected to meet with Li.

One of the sources, an official with direct knowledge of the plans, said Wat was scheduled to meet with Li on Sept. 5 in Beijing but "it didn’t happen", without elaborating.

Singapore's defence ministry did not immediately respond to a request for comment.

Li also abruptly pulled out of a meeting with Vietnamese defence leaders scheduled for Sept 7-8, Reuters exclusively reported on Thursday.

Military observers and diplomats are closely watching whether China will go ahead with plans to hold the Beijing Xiangshan Forum - an annual international security summit normally hosted by China's defence minister - in late October.

Before Li was appointed to his post in March, he had led the military's procurement unit.

In a rare notice in July, the unit said it was looking to "clean up" its bidding process and invited the public to report irregularities dating back to 2017. There has been no update on possible findings.

Li's absence is being particularly closely watched by the United States, which has not dropped sanctions imposed on him in 2018 for buying weapons from Russia's largest arms exporter, Rosoboronexport.

Chinese officials have repeatedly said they want those sanctions dropped to facilitate better discussions between the two sides' militaries. U.S. Defence Secretary Lloyd Austin attempted talks with Li during a defence conference in Singapore in June, but did not get beyond a handshake.

Wen-Ti Sung, a political scientist at the Australian National University, said that although Li had been a "roadblock" in U.S.-China military relations, his unexplained absence is problematic for China's international relations in other ways.

"Other countries will be wondering something as basic as whose number to call when they want to set up military dialogues with China," he said.

U.S. diplomat questions whether Chinese defence minister is under “house arrest“

https://reuters.com/article/china-politics-defence-minister/u-s-diplomat-questions-whether-chinese-defence-minister-is-under-house-arrest-idUSKBN30L071

The U.S. ambassador to Japan questioned in a social media post on Friday whether China's Defence Minister Li Shangfu had been placed under house arrest, adding to confusion about the state councillor's more than two week absence from public view.

In a post on X, formerly Twitter, Rahm Emanuel wrote: "1st: Defense Minister Li Shangfu hasn't been seen or heard from in 3 weeks. 2nd: He was a no-show for his trip to Vietnam. Now: He’s absent from his scheduled meeting with the Singaporean Chief of Navy because he was placed on house arrest???"

China's foreign and defence ministries did not immediately respond to requests for comment. The U.S. embassy in Tokyo said it did not immediately have further comment.

Li, 65, abruptly pulled out of a meeting with Vietnamese defence leaders last week, Reuters exclusively reported on Thursday. He was last seen in Beijing on Aug. 29 delivering a key-note address at a security forum with African nations.

The U.S government believes Li has been placed under investigation, the Financial Times reported on Friday, citing three U.S. officials and two people briefed on the intelligence. The report did not state the nature of the investigation.

Li's absence follows China's unexplained replacement of its foreign minister, Qin Gang, in July after a prolonged period out of public view and a shake-up of the leadership of the People's Liberation Army's elite Rocket Force in recent months.

Like Li, Qin is one of China's five state councillors, a cabinet position that ranks higher than a regular minister.

These moves have raised questions from analysts and diplomats about a lack of transparency in China's leadership at a time when its economy is slowing and its relations with rival superpower the United States have soured over a range of issues.

Emanuel, a gregarious and outspoken diplomat who served as chief of staff to former U.S. President Barack Obama, has hit the headlines for a series of fiery posts directed at China in recent weeks.

He first posted about Li's public absence last Friday, fuelling a swirl of speculation on his whereabouts. Asked why Emanuel had weighed in on the issue, U.S. State Department spokesperson Matthew Miller said the ambassador "throughout his career has spoken in a colorful manner".

The Singapore meeting Emanuel appeared to be referring to in his latest post was a visit by the Singapore Navy's Rear Admiral Sean Wat to China from Sept. 4-9.

On the trip, Wat met with China's Navy commander Dong Jun and other Navy leaders, Singapore's defence ministry said on its website. Two sources familiar with the matter said Wat had also been expected to meet with Li.

One of the sources, an official with direct knowledge of the plans, said Wat was scheduled to meet with Li on Sept. 5 in Beijing but "it didn’t happen", without elaborating.

Singapore's defence ministry did not immediately respond to a request for comment.

Before Li was appointed to his post in March, he had headed the military's procurement unit.

In a rare notice in July, the unit said it was looking to "clean-up" its bidding process and invited the public to report irregularities dating back to 2017. There has been no update on possible findings.

Li's absence is being particularly closely watched by the U.S., which has refused to drop sanctions imposed on him in 2018 for buying weapons from Russia's largest arms exporter, Rosoboronexport.

Chinese officials have repeatedly said they want those sanctions dropped to facilitate better discussions between the two sides' militaries. U.S. Defence Secretary Lloyd Austin attempted talks with Li during a defence conference in Singapore in June, but did not get beyond a handshake.

Wen-Ti Sung, political scientist at the Australian National University, said while Li had been a "roadblock" in U.S.-China military relations his unexplained absence is problematic for China's international relations in other ways.

"Other countries will be wondering something as basic as whose number to call when they want to set up military dialogues with China," he said.

China newspaper says EU probe into EVs “excessive“, sparked by “jealousy“

https://reuters.com/article/eu-china-autos/china-newspaper-says-eu-probe-into-evs-excessive-sparked-by-jealousy-idUSKBN30L061

The nationalist Chinese newspaper Global Times described as "excessive" Europe's probe into cheaper Chinese electric vehicles (EVs), and said China's superior offering are the envy of other automakers.

European Commission President Ursula von der Leyen announced on Wednesday the investigation a week after executives at Munich's IAA mobility show said European carmakers had a fight on their hands to produce lower-cost EVs and to close the gap on China's lead in making cheaper, more consumer-friendly models.

Beijing has since blasted the investigation as a protectionist act aimed at shielding Europe's own industry in the name of "fair competition", and warned economic ties could be harmed.

"To tell the truth, when Chinese new energy vehicles shone brightly at the recent 2023 International Motor Show in Germany, we heard some envious and even jealous remarks but we didn't expect Europe's response to be so 'excessive'," the Global Times said in an editorial.

Analysts have warned that should the EU levy duties against Chinese EVs after the probe, which could take up to 13 months, China would likely impose countermeasures, hitting European industries.

"If Europe lacks the confidence and courage to win the market through fair competition, it will be impossible to establish competitiveness in the EV industry," the newspaper wrote.

The investigation is expected to be a focus of talks when EU trade chief Valdis Dombrovskis visits China later this month, where he is expected to renew calls for fair competition.

U.S. diplomat questions whether Chinese defence minister under “house arrest“

https://reuters.com/article/china-politics-defence-minister/u-s-diplomat-questions-whether-chinese-defence-minister-under-house-arrest-idUSKBN30L071

The U.S. ambassador to Japan questioned in a social media post on Friday whether China's defence minister had been placed under house arrest, adding to confusion about the state councillor's two week absence from public view.

In a post on X, formerly Twitter, Rahm Emanuel wrote: "1st: Defense Minister Li Shangfu hasn't been seen or heard from in 3 weeks. 2nd: He was a no-show for his trip to Vietnam. Now: He’s absent from his scheduled meeting with the Singaporean Chief of Navy because he was placed on house arrest???"

The post was accompanied by the hashtag #MysteryInBeijingBuilding" and also referenced a quote from William Shakespeare's play Hamlet: "Something is rotten in the state of Denmark."

China's foreign and defence ministries did not immediately respond to requests for comment. The U.S. embassy in Tokyo said it did not immediately have further comment.

Reuters exclusively reported on Thursday that Li had abruptly pulled out of a meeting with Vietnamese defence leaders last week.

He was last seen in Beijing on Aug. 29 delivering a key-note address at a security forum with African nations.

The U.S government believes Li has been placed under investigation, the Financial Times reported on Friday, citing three U.S. officials and two people briefed on the intelligence. The report did not state the nature of the investigation.

Reuters could not immediately establish what meeting with Singapore Rahm was referring to in his post.

The Singapore Navy's Rear Admiral Sean Wat was in China from Sept. 4-9 and met the PLA Navy commander Dong Jun and other Navy leaders, Singapore's defence ministry said on its website. The website made no mention of him meeting or being scheduled to meet Li.

Singapore's defence ministry did not immediately respond to a request for comment.

The hiatus surrounding Li follows China's unexplained replacement of its foreign minister, Qin Gang, in July after a prolonged absence from public view and a shake-up of the leadership of the People's Liberation Army's elite Rocket Force in recent months.

These moves have raised questions from analysts and diplomats about a lack of transparency and unpredictable decision-making in China's leadership.

Li, who was appointed to his post in March, is also one of China's five state councillors, a cabinet position that ranks higher than a regular minister.

China August industrial output, retail sales growth beat expectations

https://reuters.com/article/china-economy-activity/chinas-economy-shows-some-signs-of-stabilising-but-property-slump-threatens-outlook-idUSKBN30L02Z

China's industrial output grew 4.5% in August from a year earlier, accelerating from the 3.7% pace seen in July, suggesting that the recent flurry of support measures may be starting to slowly stabilise a stumbling economic recovery.

The data released on Friday by the National Bureau of Statistics (NBS) beat expectations for a 3.9% increase in a Reuters poll of analysts, and marked the quickest rate since April.

Retail sales, a gauge of consumption, also grew at a faster 4.6% pace in August aided by the summer travel season, and was the quickest growth since May. That compared with a 2.5% increase in July, and an expected 3% increase.

Fixed asset investment expanded 3.2% in the first eight months of 2023 from the same period a year earlier, versus expectations for a 3.3% rise. It grew 3.4% in the January-July period.

The figures followed better-than-expected bank lending data, narrowing in the declines of exports and imports as well as easing deflationary pressure, indicating tentative signs of stabilisation in China's sputtering economy.

All the same, an ailing property sector, high youth unemployment, uncertainty around household consumption and rising Sino-U.S. tensions over trade, technology and geopolitics have raised the bar for a durable economic recovery in the near future.

Li Shangfu: speculation grows over fate of China’s missing defence minister

https://www.theguardian.com/world/2023/sep/15/china-defence-minister-li-shangfu-missing

China’s defence minister has not been seen in almost three weeks with speculation he is under investigation, the latest case of a senior Communist party official to disappear from public view.

General Li Shangfu was last seen on 29 August when he gave a speech to the China-Africa peace and security forum. His last overseas trip was to Moscow and Minsk in mid-August, where he met Russian officials on the sidelines of a security conference, and with Belarusian president Alexander Lukashenko.

The US government believes Li has been put under investigation, the Financial Times reported on Friday, citing senior officials. Reuters reported Li cancelled a meeting with Vietnamese defence officials at the last minute last week. Two Vietnamese officials told the news agency that Beijing had postponed the annual meeting.

Rahm Emanuel, the US ambassador to Japan, has been particularly vocal about the mystery, likening Xi’s cabinet to Agatha Christie’s novel And Then There Were None.

On Friday he posted on X/Twitter claiming Li hadn’t appeared at a scheduled meeting with the Singaporean chief of navy, because he was “placed under house arrest”. He did not provide a source for the claims.

Emanuel’s office and the Singaporean navy have been contacted for comment.

Li’s disappearance follows the surprise removal of foreign minister Qin Gang from his post in July, also after a weeks-long disappearance. There has been no further information or sign of him since.

Xi also replaced two top generals of the Rocket Force in early August, in a major shake-up of the military wing’s leadership. Former commander Li Yuchao had not been seen in public for weeks prior, and there was no explanation of his removal.

Since coming to power in 2013, Xi has run an extensive and unforgiving anti-corruption drive which analysts say also targeted political opponents. There has been a particular crackdown on corruption in the People’s Liberation Army (PLA).

But more than a decade into his rule, and after the greatest consolidation of power around a Chinese leader since Mao Zedong, senior ranks are now largely all Xi’s allies.

“It would be remarkable that in year 11 of Xi being in charge of the PLA there is still such high-level corruption, and for the Rocket Force officers and Li Shangfu, Xi can not blame his predecessors,” wrote China analyst Bill Bishop on Friday.

Li was appointed defence minister in March 2023, after a few months as the highest-ranked member of the central military commission, which oversees the armed forces. In 2018, as director of the military’s equipment development department he was sanctioned by the US over the PLA’s purchase of Russian military equipment.

Li’s biography and title remained online at the time of publication. Following Qin’s removal references to him as foreign minister were quickly scrubbed from Chinese internet sites, although some were later restored.

In China’s political system ministers are not the highest ranking in a particular portfolio. As defence minister, Li reports to two vice-chairmen in the central military commission, who then report to Xi. However he is also one of five state councillors, which ranks higher than a regular minister. Qin remains a state councillor.

---

China’s defense minister under investigation for corruption

https://www.washingtonpost.com/national-security/2023/09/15/china-defense-minister-missing-li-shangfu/2023-09-14T14:15:54.756Z

Chinese Defense Minister Li Shangfu is under investigation for corruption and likely will be removed, two U.S. officials said this week, in what would be the latest in a series of top-tier purges of Beijing’s security ranks.

The expected purge of Li, who has been noticeably absent from public view for the past two weeks, in the wake of other dismissals will heighten a sense of uncertainty over how China’s day-to-day foreign policy is being managed.

It will also further call into question Xi’s leadership as he consolidates power, analysts say. They note that the narrowing of his inner circle to yes-men has deprived him of opinions and advice that could avert damaging decisions.

One Chinese official said that Li’s dismissal was imminent, but said it was for “health issues,” not corruption. Two people involved in the Chinese defense industry, however, said there is broad consensus that Li’s absence is related to corruption charges relating to his previous position as head of military procurement.

Li, 65, who was appointed defense minister in March, is one of five state councilors — high-level officials — tapped by Xi to form China’s leadership cabinet this year.

Li was last seen on Aug. 29, when he gave a keynote address at the China-Africa Peace and Security Forum in Beijing. Earlier last month, he traveled to Belarus and Russia, meeting in Moscow with his counterpart, Sergey Shoigu. He is due to take part in a major international defense and security conference in Beijing next month, the Xiangshan Forum.

China’s military shake-up may hint at corruption — or Xi Jinping’s weakness

Li’s apparent cashiering would come months after the purge of China’s foreign minister, Qin Gang, and the leadership of the People’s Liberation Army Rocket Force, its premier military unit in charge of the country’s growing arsenal of nuclear weapons and conventional missiles.

“These are some of the most important outward-facing positions in China,” said one senior U.S. official, who like others, spoke on the condition of anonymity because of the matter’s sensitivity.

Li “is under serious investigation and in all likelihood is being removed,” the official said, noting that the Rocket Force leadership purge also involved allegations of corruption. The Financial Times reported Thursday that U.S. officials think that Li is under investigation.

Should Li be sacked, he would be the second state councilor to be removed from a ministerial position within three months.

“It could be even worse than that,” the official said, alluding to the potential for further purges.

The Chinese Embassy in Washington declined to comment.

Beijing has not publicly explained Li’s absence, and Chinese military websites still list him as minister of defense. Traditionally, when Chinese officials are ousted for corruption or other disciplinary crimes, Beijing refrains from citing a reason, and confirmation can take months or even years.

When Qin abruptly disappeared from sight in June, Beijing’s foreign ministry steadfastly refused to comment, instead scrubbing his existence from its Chinese-language website. Similarly, when Xi this summer purged the top two leaders of the PLA Rocket Force, the only information released by Beijing was an announcement of their replacements.

Since China’s 20th Party Congress last October, Xi has consolidated power, elevating a cadre of high-level officials based on their loyalty and closeness to him. The removal of Li on the heels of other officials would “take a huge toll on Xi Jinping’s reputation and credibility,” said Yun Sun, director of the China Program at the Stimson Center. “It would basically suggest that Xi Jinping’s domestic political position is in question.”

The housecleaning comes as China’s economy is struggling to right itself after a disastrous mass lockdown policy during the covid-19 pandemic, a real estate market crash and a mounting debt crisis. The tumult of Xi’s domestic problems was likely a factor in his skipping the G-20 leaders’ summit in New Delhi last week, analysts said.

With the dismissals of top diplomatic and military officials, “it seems like there’s a lot of churn and instability in who’s representing and speaking for China on the world stage,” said Sheena Chestnut Greitens, director of the Asia Policy Program at the University of Texas, Austin.

“As China’s whole system has become more and more opaque and as powers become personalized under Xi Jinping, that makes it harder for outside interlocutors to know where China’s foreign policy is going to go,” Greitens said.

Chinese Foreign Minister Qin Gang removed from post after only 7 months

Dennis Wilder, a former senior China analyst at the CIA, said Xi has created his own dilemma “because he’s taken so much power for himself.” Several years ago, Xi abolished term limits allowing him to serve an unprecedented third term.

“When you close down a system to one-man rule like this, you close off discussion and debate within the system other opinions aren’t brought into play that can lead to better decision-making,” said Wilder, who is now a senior fellow at Georgetown’s U.S.-China initiative.

Li’s ascension to defense minister followed several high-profile roles at the forefront of China’s military modernization efforts, including serving in 2016 as deputy commander of the PLA Strategic Support Force, a unit that oversees advanced warfare technology including space and cyber operations.

The following year, he was named as the top military procurement official, heading up the PLA Equipment Development Department, a powerful unit responsible for buying weapons.

In recent months, the procurement agency announced it had launched an investigation into alleged violations during a period that coincided with Li’s tenure as director.

In July, a notice released by the department called for tips into alleged violations in the procurement process dating to October 2017. The notice listed eight violations, including “actively leaking secrets,” “unfair handling of matters” and “lack of supervision.” It solicited tips regarding individuals who had manipulated the bidding process for personal gain.

China’s national strategy to rapidly build a military that can compete with the United States has seen billions of dollars flow to public and private contractors, a process which analysts say is easily corrupted.

“The temptations that come with that for senior officers in charge of these programs are great,” Wilder said.

The alleged corruption calls into question the professionalism and readiness of the PLA, he said. “We tend to judge the PLA by the equipment they’ve been buying. But this leads to questions about the quality and reliability of the officer corps. Are they working in the national defense or lining their own pockets?”

China’s military seeks to exploit U.S. troops, veterans, general warns

Corruption has long plagued China’s military.

In 2012, when Xi took power, he removed the two vice-chairmen of the Central Military Commission who were later charged with corruption.

A few years later, the former chief of the joint staff of the PLA, Fang Fenghui, was placed under investigation for corruption, and in 2018, Xi fired the Chinese head of Interpol after he reportedly admitted to taking more than $2 million in bribes. In 2019, Fang was sentenced to life in prison on corruption charges.

In 2018, Li and the Equipment Development Department were sanctioned by the United States for violating a law barring significant transactions with persons working on behalf of Russian defense or intelligence agencies. These transactions involved Russia’s transfer to China of Su-35 combat aircraft and S-400 surface-to-air missile system-related equipment. The sanctions on Li have caused friction between Beijing and Washington as U.S. officials are seeking to restart military dialogues.

Beijing in May declined a U.S. request for Li to meet with Defense Secretary Lloyd Austin on the sidelines of the Shangri-La Dialogue in Singapore, citing the sanctions. The State Department in May said it was not considering lifting sanctions on Li. There have been subsequent discussions about revisiting the issue, but there seems to be no appetite to do so, and in any case, Li’s removal would moot the issue, officials said.

“The state of things is changing constantly day-to-day now,” said an adviser to the Chinese government in Beijing. The person said that there is fresh scrutiny of the country’s security apparatus, including the military, intelligence agencies and internal security forces.

U.S. officials said that Xi’s decade-long campaign to root out corruption is challenged by systemic issues.

“Some of the PLA’s enduring problems may be too big for Xi to solve, and they have a real impact on the PLA’s ability to achieve what he wants them to,” said a second U.S. official. “We know that corruption in the PLA runs deep enough for this to be a factor. And we know it’s had a profound effect on what they’re able to do, and how they do it.”

This week, China’s president sought to project an image of control. During an inspection of a PLA unit in northeast China, Xi, dressed in a pale green military button-down, assembled officials to “strictly enforce education and management of the troops, and maintain a high degree of centralization, unity, security and stability,” according to state news agency Xinhua.

GOP lawmakers call for heavier sanctions against China’s Huawei, SMIC

https://www.washingtonpost.com/technology/2023/09/14/us-sanctions-china-huawei-mate-60-pro-smic/2023-09-14T20:22:45.164Z

Ten Republican lawmakers are calling on the Commerce Department to impose heavier sanctions against China’s Huawei Technologies and Semiconductor Manufacturing International Corp., after the two companies displayed a domestically manufactured advanced smartphone chip, circumventing U.S. export controls.

House Foreign Affairs Committee Chairman Michael McCaul (R-Tex.) and nine other lawmakers signed the letter dated Thursday, which suggested seven measures to tighten sanctions against China’s chip industry and punish Huawei and SMIC for allegedly violating U.S. export controls. The letter was addressed to Alan Estevez, undersecretary of Commerce for Industry and Security.

Earlier this month, Huawei unveiled a smartphone running an advanced processor made by SMIC, timed to Commerce Secretary Gina Raimondo’s visit to Beijing. The phone launch made waves in U.S. policy circles, as an apparent sign that a four-year campaign in Washington had failed to prevent China’s state-supported tech champions from making the jump to the 5G era of chips.

Huawei’s new phone, the Mate 60 Pro, sent lawmakers scurrying to try to understand if SMIC had violated U.S. sanctions to make the chip.

The lawmakers’ letter enumerates how the Commerce Department could wield arcane export controls law to make it harder for China’s chip makers going forward.

The letter called on the Commerce Department to set up a China-facing sanctions authority under the International Emergency Economic Powers Act, which could impose “full blocking sanctions” on Huawei and SMIC. It called for all existing export licenses to Huawei and SMIC to be revoked, and for criminal charges to be pursued against the companies’ executives.

The Republican lawmakers’ letter addresses a long-standing complaint by some in Washington that the export controls had holes, allowing U.S. technology to still filter to China. Nazak Nikakhtar, who was a Commerce Department assistant secretary under the Trump administration, said that they had long known the export controls were far from airtight.

“Our export controls shouldn’t have gaps and holes in the way that they do,” she said. “This isn’t an indictment of the Biden administration or Trump administration or anybody in particular. This is across the board.”

The letter said that reports of the phone “suggest” a violation of U.S. export control regulations due to the ubiquity of U.S. technology in the global semiconductor supply chain. But proof that SMIC violated sanctions with the new chip remains elusive. Chip experts say while it would have been very difficult for the two companies to sidestep any and all U.S. technology in developing the chip, it is not impossible.

U.S. officials so far have not confirmed if they have evidence that either incriminates or exonerates SMIC. The Commerce Department said in a statement last week that they were still working to obtain more information on the “character and composition of the purported 7nm chip.”

“Let’s be clear: Export controls are just one tool in the U.S. government’s toolbox to address the national security threats presented by the PRC,” the statement said.

The Commerce Department, Huawei and SMIC did not immediately respond to requests for comment Thursday.

Doug Fuller, a chip researcher at the Copenhagen Business School, said he believed the chance that SMIC could make a 7-nanometer chip efficiently at scale without U.S. equipment was “basically zero,” but that it was possible for it to make them “very inefficiently in small volumes without American equipment.”

Chris Miller, a professor at Tufts University and author of the book “Chip War,” said “it would be pretty surprising if U.S. tools weren’t used. But I wouldn’t say I’m highly certain of that conclusion.”

The letter was also signed by House Energy and Commerce Committee Chairwoman Cathy McMorris Rodgers (R-Wash.), House Armed Services Committee Chairman Mike Rogers (R-Ala.), House Select Committee on the Chinese Communist Party Chairman Mike Gallagher (R-Wis.), Ann Wagner (R-Mo.), Robert E. Latta (R-Ohio), Young Kim (R-Calif.), Gus Bilirakis (R-Fla.), Brian Mast (R-Fla.), and H. Morgan Griffith (R-Va.).