• China hits back at economic war of words as ‘some people with ulterior motives’ fabricate threats
• Is China’s economic recovery still making headway? 6 takeaways from November’s data
• ‘I wouldn’t say I’m optimistic’ about state of US-China relations, says ambassador to Beijing Nicholas Burns
• More than 100 injured in a Beijing rail collision as heavy snow hits the Chinese capital
• Vladimir Putin hails China-Russia ties as trade beats US$200 billion target, defies Western sanctions
• Doubts over just how long the China-brokered truce will last in Myanmar
• US-China relations: both sides must see engagement as ‘moral imperative’, Hong Kong forum told
• Launch of first Hong Kong school fair for mainland Chinese draws nearly 10,000 attendees, as pupils seek out less intense learning space
• ‘Evil heart’: greedy woman in China condemned online for emptying US$700 from e-wallet of phone found on street
• Will more assertive Philippine approach to South China Sea pay off in long run?
• How AI is helping Chinese short dramas storm the West
• Chinese University of Hong Kong brings on board 5 political, business heavyweights to join governing body, weeks after revamp bill passed
• China must work on trade and trust with EU if it wants warm long-term ties
• Quirky China: man in shop kills rat with bare hands, spicy grilled ice cubes, Shanghai sunflower performance artist splits opinion
• Chinese game makers Tencent, NetEase tout ‘social values’ in biggest titles as regulatory crackdown weighs on industry
• China’s Haichang Ocean Park gets support from Saudi Arabia’s Tourism Development Fund to build marine themed park in kingdom
• Beijing accuses Taiwan of import ‘barriers’ that have taken toll on mainland Chinese firms
• UK ‘vulnerable’ over its dependency on China for rare minerals
• China’s once-hot real estate trusts get slammed as property slump spills over to dent demand
• China’s ‘unluckiest’ railway, Hong Kong actress Kathy Chow’s most memorable roles: SCMP’s 7 highlights of the week
• ‘Probably no coincidence’: China launches space plane close to planned X-37B take-off date but US rival still grounded
• [Business] China former bank manager sentenced to life in prison for corruption
• ‘Heartless’: selfish woman in China cancels ride-hail car after cabbie drove 40km, waited half-hour but failed to help with bags
• China looks to AI to navigate massive overhaul of its waterway transport system
• China’s economic struggles continue as property, private investment drag in November
• US House panel on China vows to hold Beijing, Hong Kong accountable for targeting activists abroad
• China wants to build ‘first-class’ investment banks – but isn’t telling the industry how

China hits back at economic war of words as ‘some people with ulterior motives’ fabricate threats

https://www.scmp.com/economy/china-economy/article/3245221/china-hits-back-economic-war-words-some-people-ulterior-motives-fabricate-threats?utm_source=rss_feed

China’s national security apparatus vowed on Friday to fight back against a narrative war over its economic condition, elevating the issue about how to describe the status quo and outlook of the Chinese economy to the level of economic security.

The statement from the Ministry of State Security came three days after the tone-setting central economic work conference, during which President Xi Jinping pledged to maintain economic stability, guide public opinion and play up China’s “bright prospects” in 2024.

The economic domain has become a “battlefield” of superpower rivalry, and dealing with various clichés denigrating China’s economy has become an external challenge, the ministry said on its WeChat account.

“Talk concerning China’s decline is in essence an intention to create a ‘narrative trap’ or a ‘cognitive distortion’,” it said.

“It aims to doubt or deny China’s socialist system and attempts to strategically contain China’s development.

“There are some people with ulterior motives. They are fabricating a China threat again … with the intention to disrupt market expectations and economic growth momentum.”

In the statement that followed the two-day central economic work conference, which concluded on Tuesday, Beijing’s top leadership claimed China had “withstood the external pressure and overcome domestic difficulties” this year, with the world’s second-largest economy set to hit its 2023 growth target of “around 5 per cent”.

From outer space to seven seas, China’s 6 big economic priorities for 2024

It also placed a focus on economic construction and listed development as China’s “biggest political priority”.

The growth rate would be higher than most developed nations, including the United States and European countries.

But analysts point to the crisis involving Evergrande, Country Garden and other property developers, the debt mountain facing local government financing vehicles, high youth unemployment, a demographic crisis and faltering investor confidence, as potential problems for future growth.

“The national security ministry must echo the top leadership’s mandate and we know the backdrop of intensifying rivalry with America,” said a Shanghai-based scholar, who asked not to be identified due to the sensitivity of the issue.

“We still wonder if normal discussions about the problems of the economy will inadvertently cross the vague red line, now that Beijing clearly wants us to focus on the bright prospects.”

It is not the first time that the state security ministry has touched economic topics, having warned about the security of strategic minerals overseas at the end of November.

Earlier this month, it also defended Beijing’s high-profile investigation into foreign firms on national security grounds.

The moves against the likes of Capvision, Bain & Company and Mintz Group were seen to contrast with widespread efforts by Beijing to lure both foreign and private investors with a promise of equal treatment and wider market access.

On Friday, the Beijing-based semi-official China Chamber of International Commerce set up a work committee to help solve complaints and problems raised by foreign-funded firms.

Is China’s economic recovery still making headway? 6 takeaways from November’s data

https://www.scmp.com/economy/economic-indicators/article/3245206/chinas-economic-recovery-still-making-headway-6-takeaways-novembers-data?utm_source=rss_feed

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China’s retail sales rose by 10.1 per cent in November, year on year, up from the 7.6 per cent growth in October, but below the 12.6 per cent growth forecast by Chinese financial data provider Wind.

Analysts at Capital Economics said consumption “held up well”, though they pointed to the low base of comparison from last year as cities in China were under stringent lockdowns and retail sales fell by 5.9 per cent, year on year, in November 2022.

“While retail sales have shown strong year-on-year growth, this increase is primarily due to a low-base effect. When considering month-on-month growth, after eliminating seasonal factors, there has been a mild contraction,” said Yue Su, principal economist for China at The Economist Intelligence Unit.

Property investment in China fell by 9.4 per cent in the first 11 months of 2023 compared with a year earlier, with analysts at Capital Economics saying “property investment eased slightly” without elaboration.

The reading for the key gauge for market sentiment in the crisis-hit sector declined further from a fall of 9.3 per cent a month earlier, while it matched the forecast from Wind.

“While markets may have become somewhat desensitised by constant discussions related to the property sector, it remains the single largest drag affecting China’s economy, especially as cash-strapped and insolvent developers have left a vast number of homes unfinished,” said analysts at Nomura.

Fixed-asset investments in China expanded by 2.9 in the first 11 months, year on year, unchanged from the growth seen in the January-October period, though analysts at Nomura said the reading again missed market expectations mainly due to a low base.

The reading was partly lifted by Beijing’s decision in October to sell 1 trillion yuan (US$139 billion) worth of sovereign bonds, and also front-load the local government bond quota, to stabilise economic momentum.

China’s economic struggles continue as property, private investment drag

Analysts at Capital Economics said the year-to-date growth holding steady in the first 11 months of the year implied an acceleration in monthly year-on-year growth from 1.4 to 2.9 per cent, with growth also picking up in seasonally adjusted terms.

Private investment, meanwhile, declined by 0.5 per cent in the first 11 months of the year, compared with a year earlier.

China’s industrial output rose by 6.6 per cent in November, compared with 4.6 per cent growth in October, and analysts at Capital Economics said this was the “main bright spot” in November’s data release, thanks to the strength in exports.

“Much of the strength in November came from industrial production. Growth beat expectations,” they said.

Sustained export growth in ‘doubt’: 5 takeaways from China’s trade data

They added that, after adjusting for seasonality, output in November expanded at the fastest clip in 18 months.

“This partly reflects the recent strength of exports, which reached a new high in volume terms last month,” they said.

Analysts at Nomura said the higher year-on-year growth, which they said was broad-based, was mainly driven by a low base.

China’s urban surveyed unemployment rate stood at 5 per cent in November, year on year, unchanged from October.

Analysts at Capital Economics said, in seasonally adjusted terms, the urban unemployment rate edged and remains well below the 5.6 per cent it averaged last year.

They also said hours worked rose last month.

Analysts at Capital Economics said the data released on Friday suggested that “the recovery continued to make headway” in November.

“This partly reflects the step-up in policy support, which looks set to remain flowing, going into 2024,” they said.

They pointed to the signals that came from the central economic work conference earlier this week that suggested more fiscal support and additional monetary easing were on the way.

“The November data indicates a continuing steady recovery in China’s economy, driven by government-driven investment and a gradual stabilisation of external demand,” said Yue at The Economist Intelligence Unit.

Yue expects China’s real gross domestic product growth to slow by 0.6 percentage points to 4.9 per cent in 2024.

“Nevertheless, the economy will be on firmer footing than it was in 2023,” Yue said. “Moves by the government to extend home-buying easing in Beijing and Shanghai will help, but a weak labour market and income expectations will serve as a drag” on a strong economic recovery.

The property market remains the single-largest drag affecting China’s economy, according to analysts at Nomura, who said it may contribute to another economic dip in the first half of 2024.

‘I wouldn’t say I’m optimistic’ about state of US-China relations, says ambassador to Beijing Nicholas Burns

https://www.scmp.com/news/china/diplomacy/article/3245299/i-wouldnt-say-im-optimistic-about-state-us-china-relations-says-ambassador-beijing-nicholas-burns?utm_source=rss_feed

“Hopeful” and “realistic”, but not “optimistic”.

That was the assessment on Friday from America’s ambassador to Beijing about recent efforts by US President Joe Biden’s administration to stabilise the US-China relationship.

In a wide-ranging discussion at the Brookings Institution that hit on all the familiar notes about the challenge that China presents for the US, Ambassador Nicholas Burns referred to the country as a “systemic rival”, but said that because Washington is both competing and engaging, the relationship “doesn’t render into simple analysis”.

Other examples of the complex diplomatic grey zone include disappointment over the State Department’s assessment that Beijing has taken Moscow’s side in Russia’s war against Ukraine, along with confidence that the Kremlin is not yet getting Chinese lethal weapons.

President Xi Jinping’s stated goal of having some 50,000 American students in China – the kind of exchange that Burns said was necessary for the next generation of US policymakers – clashed with the way Beijing “unremittingly” hammers Washington’s reputation in its media and blames America for the Russian invasion.

Regarding the agreements that Biden and Xi made during their summit in California last month – to cooperate in fighting fentanyl and resume military-to-military contacts – Burns said: “So far the Chinese have met their commitments on fentanyl and I think will in terms of our military-to-military contacts, but let’s see what happens over time.”

The problem, he said, is that Chinese government officials tend to shut down communication whenever a bilateral dispute occurs, making the duration of recent progress uncertain.

China uncooperative on fentanyl crisis until body was off blacklist: US official

“So I wouldn’t say I’m optimistic,” he said. “Careful … realistic, maybe hopeful if you will, but hopeful is different from being optimistic.”

However, Burns was clear about the direction that engagement is going, saying the breakdown in talks on the military and other fronts earlier this year represented the lowest point in bilateral relations since president Richard Nixon began talks with the People’s Republic of China in the early 1970s.

Just months later, the Xi-Biden summit was the “best” of the seven meetings the two leaders have had since Biden became president, including five virtual ones, Burns said.

His comments follow signals from both sides this week that they aim to address some of the deep divisions that had destabilised the relationship.

This included an appearance at the 50th anniversary gala of the US-China Business Council in Washington on Thursday, at which Burns and China’s ambassador to the US, Xie Feng, both expressed a desire for better relations in 2024.

Burns also made the rounds in Congress as he closed out one of the most tumultuous years ever for US-China relations, which began with an effort to get past then-House speaker Nancy Pelosi’s visit to Taiwan in 2022. That move spurred extended live-fire military drills by the People’s Liberation Army that nearly blockaded the island.

When US Secretary of State Antony Blinken was ready to travel to Beijing to halt the downward spiral in bilateral relations caused by Pelosi’s visit, the trip was pre-empted by the discovery of a Chinese surveillance balloon that flew across US airspace.

Efforts to recover from that incident – which many lawmakers used throughout the year to portray Beijing as a national security threat – eventually led to the summit in California, their first direct talks in a year.

With many issues outstanding despite last month’s summit, Burns met lawmakers involved in legislation that threatens to strain ties further.

Burns spent time with Senate Majority Leader Charles Schumer, who has championed a bill aimed at removing China from US semiconductor supply chains, as well as with Senator Jeanne Shaheen, a New Hampshire Democrat co-sponsoring legislation to block the federal government retirement plan from investing in firms based in or closely affiliated with China.

He also met with Senator Dan Sullivan, an Alaska Republican, for a “very productive discussion of the many challenges in our relationship with China”, and Winston Lord, an architect of Nixon’s project to forge ties with Beijing, for a conversation at the Council on Foreign Relations about the state of the bilateral relationship.

More than 100 injured in a Beijing rail collision as heavy snow hits the Chinese capital

https://apnews.com/article/beijing-heavy-snow-subway-collision-d9d55080750b8ba545957ac0d21e8ac3Police officers watch over near the site of train collision on the western district in Beijing, Friday, Dec. 15, 2023. Two subway trains have collided in heavy snow in Beijing, sending over 500 people to the hospital, including more than 100 with broken bones. Authorities said Friday the accident occurred the previous evening in Beijing's mountainous west on an above-ground portion of the sprawling subway system's Changping line. (AP Photo/Ng Han Guan)

2023-12-15T07:16:31Z

BEIJING (AP) — Two subway trains collided in heavy snow in Beijing, sending 515 people to the hospital, including 102 with broken bones, authorities said Friday.

The accident occurred Thursday evening in Beijing’s mountainous west on an above-ground portion of the sprawling subway system’s Changping line.

Slippery tracks prompted automatic braking on the leading train. A train following from behind was on a descending section and went into a skid and was unable to brake in time, the city transport authority said in a statement Friday on its social media account.

Emergency medical personnel, police and transport authorities responded, and all passengers were evacuated by about 11 p.m., it said. Twenty-five passengers were under observation and 67 remained hospitalized Friday morning, the authority said.

Unusually heavy snow that began falling Wednesday has prompted the suspension of some train operations and school closures.

Alerts remain in place for icy roads, extreme cold and further snowfall. Temperatures were due to fall to minus 11 degrees Celsius (12 degrees Fahrenheit) overnight.

No deaths have been reported from the winter storms that have struck a wide swath of northern China. Beijing’s winters tend to be bitterly cold, but heavy snowfall is rare.

Vladimir Putin hails China-Russia ties as trade beats US$200 billion target, defies Western sanctions

https://www.scmp.com/economy/china-economy/article/3245250/vladimir-putin-hails-china-russia-ties-trade-beats-us200-billion-target-defies-western-sanctions?utm_source=rss_feed

Russian President Vladimir Putin hailed his country’s deepening cooperation with China on Thursday and raised expectations of further bilateral trade and investment in the future, in defiance of grave concerns from Washington and Brussels over their continued strengthening of ties.

Speaking at his annual “Results of the Year” news conference, Putin estimated that trade value with China may reach a record US$230 billion this year, much higher than a previously expressed US$200 billion target.

“This is a very decent level,” the Russian president said, according to an English transcript posted online.

Putin, whose country has faced far-reaching Western sanctions since its invasion of Ukraine in February 2022, said Russia and China are steadily progressing economic ties “across the board”, particularly in infrastructure construction and hi-tech industries.

Tensions with the United States and its allies over the Ukraine war have pushed the two countries closer. China has replaced Europe as Russia’s biggest energy buyer, while Russia’s reliance on Chinese products has also increased.

In the first 11 months of the year, bilateral trade rose 26.7 per cent compared to the year prior. Cumulative trade value hit US$218.2 billion on the back of Beijing’s increased appetite for energy, China customs data showed.

EU set to ask Xi to stop Chinese firms getting around sanctions on Russia

Unlike the surplus it has with most other countries, China is in a trade deficit with Russia. As crude oil is the most valuable commodity in their bilateral trade, energy is the most important aspect of the relationship.

But Russia’s purchasing power has been on the decline since the second half of the year as the war weighs on its economy and the rouble continues to depreciate, according to Chinese exporters and freight forwarders.

As the two countries cement their relationship, China risks further raising the ire of the US and Europe – both of which are more important trade partners.

The US Commerce Department has been lengthening its sanction list of Chinese companies over purported support for Moscow’s military and defence industry – including the supply of integrated circuits with American origins.

China’s relationship with the European Union has also deteriorated due to China’s perceived support of Russia.

“What could the EU and China do to move [their relationship] forward? I think the overall answer is not much,” said Pascal Lamy, former director general of the World Trade Organization.

“We Europeans do not understand why China sides with Russia,” the French political consultant and businessman said in a speech at the headquarters of Beijing-based think tank Centre for China and Globalisation on Wednesday.

Putin, meanwhile, described China-Russia relations as a major factor in global stability.

“Yes, we are engaged in military, economic and humanitarian cooperation, but we are not creating any blocs,” he said.

“Our friendship is not directed against third countries – it is aimed at benefiting ourselves, but not at harming anyone.”

After alleging the West is trying to “use its friendships against third countries” in his answer to a question about relations with China, he concluded with stern words.

“We are closely monitoring their actions and will be sure to respond together, effectively and promptly. No one should have any doubt about this.”

Doubts over just how long the China-brokered truce will last in Myanmar

https://www.scmp.com/news/china/diplomacy/article/3245281/doubts-over-just-how-long-china-brokered-truce-will-last-myanmar?utm_source=rss_feed

A China-brokered truce between Myanmar’s junta and militants may not lead to a lasting ceasefire because the rebels are determined to fight for autonomy, according to observers.

But Beijing may continue to intervene to restore stability in northern Myanmar as it strives to secure the border and stamp out cyber scams in the region that have ensnared many Chinese nationals, they added.

China’s foreign ministry said on Thursday that Beijing had mediated peace talks between Myanmar’s junta and the Three Brotherhood Alliance, a bloc of regional rebels.

The alliance comprises the Arakan Army from Rakhine, the Myanmar National Democratic Alliance Army from Kokang, and the Ta’ang National Liberation Army from Ta’ang.

Ministry spokeswoman Mao Ning said that in the talks representatives from the parties reached an agreement on a “temporary truce and maintenance of dialogue”.

Mao added that combat in northern Myanmar “has declined significantly”.

Armed insurgencies have broken out in several fronts across Myanmar in recent weeks, posing the most serious threat to the junta since it seized power in a coup two years ago.

In particular, fierce fighting had persisted since late October in the northern state of Shan, which borders Yunnan province in China’s southwest.

China and Myanmar share a 2,000km (1,250-mile) border and the fighting has closed in on a number of China’s border towns several times, forcing residents to evacuate.

Tens of thousands of refugees have also fled Myanmar because of the conflict.

While Mao said China hoped the parties in Myanmar could realise their consensus, analysts were pessimistic that the truce would last.

They said while both the Chinese and Myanmese governments had issued statements about the peace talks, the rebels had not taken a public position.

Instead, the alliance said on social media on Wednesday that it “reaffirms [its] commitment to end dictatorship”.

“Significant progress made … Our dedication remains strong with the entire Myanmar population,” the alliance said.

China indicts 52 per cent more cyber scammers than last year amid crackdown

Kalvin Fung Ka-shing, a former assistant lecturer at the Chinese University of Hong Kong who conducts research on Southeast Asian politics at Waseda University in Tokyo, said the alliance remained committed to achieving autonomy and the junta to reasserting control in the peripheries.

“There is still a high chance that violence will erupt any time,” Fung said.

But Liu Zongyi, a senior fellow of the South Asia and China Centre at Shanghai Institutes for International Studies, said it was possible that the junta and the rebels might return to the previous status quo.

“It is possible for Myanmar to achieve a truce and maintain the status quo between Myanmar’s central government and its local forces,” Liu said.

“Myanmar’s junta and localities have long been in a stalemate and are unable to eliminate or take over each other. Because of internal and external pressure, the two sides may just return to that status quo.”

Asean could be ‘caught off guard’ if the Myanmar junta were to collapse

Liu said Beijing, which has a close relationship with the militant groups in northern Myanmar, might be able to apply greater pressure such as sending troops to police the border areas.

Besides border safety, cracking down on cyber scams is another incentive for Beijing to intervene in Myanmar’s internal conflict.

With its close cultural and political ties with China, northern Myanmar has become a major base for cyber scammers who often lure Chinese with lucrative jobs and then coerce them into engaging in criminal activities.

The scams have mushroomed under the watch of the junta government and the local militants and at least 120,000 people in Myanmar “may be held in situations where they are forced to carry out online scams”, the United Nations human rights office said in a report in August.

Earlier this year, Beijing vowed to double down on tackling the scams in northern Myanmar as domestic concerns of lawlessness in the areas exploded.

Police in China have issued a series of wanted lists for members of the “big four families” in the Kokang Self-Administered Zone, including for Bai Suocheng, the zone’s former chairman.

Compared with China’s ambiguity towards Myanmar’s internal affairs in public, Beijing has adopted a “zero tolerance” attitude to the scams.

So much so that the positions of the parties in the conflict towards cyber fraud “may somewhat influence China’s perception of them”, Liu said.

Is it the beginning of the end for Myanmar’s junta?

A Chinese professor researching Myanmar and who declined to be named due to the sensitivity of the issue, said China was concerned about various crimes in the area, including drug trafficking, and hoped to bolster stability in Myanmar to change the underlying conditions for them.

He said people along the border had a close relationship and that resulted in cross-border crime.

“China and Myanmar are neighbours, and people in China and Myanmar’s border are of the same ethnicity. They just live on the two sides of the border. China and Myanmar are two separate countries but both share a lot of common interests,” he said.

He said the solution was to restore law and order in northern Myanmar and China needed to intervene more to realise that.

US-China relations: both sides must see engagement as ‘moral imperative’, Hong Kong forum told

https://www.scmp.com/news/china/diplomacy/article/3245256/us-china-relations-both-sides-must-see-engagement-moral-imperative-hong-kong-forum-told?utm_source=rss_feed

The United States and China should view engagement as a “moral imperative” and build greater trust as they seek to manage tensions, a forum in Hong Kong has heard.

While last month’s meeting between presidents Xi Jinping and Joe Biden was seen as positive, speakers at the event said relations could be tested by events such as next month’s Taiwanese elections.

John Thornton, chair emeritus of US think tank Brookings, said both Washington and Beijing needed to recognise their place in the world and increase the frequency of their communication.

“The world has changed. They’re the centre of the world and how the two governments interact has to materially change,” he said.

“At a time when you need absolutely the opposite, what’s going on? We’re getting less and less communication.”

Thornton was speaking as part of a fireside chat at an event organised by the University of Hong Kong’s Centre on Contemporary China and the World.

Xi-Biden meeting a ‘milestone’ in US-China ties: top envoy

The centre, set up last month, is a rare think tank in Hong Kong dedicated to US-China relations. Its founding director Li Cheng, a political scientist, told the conference that the city had a “genuine leverage to shape international discourse”.

In recent months both sides have been working to restore communications and mend ties after tensions soared following then US House speaker Nancy Pelosi’s visit to Taiwan last year and the shooting down of an alleged Chinese spy balloon early this year.

Top US officials have visited Beijing and, when the two presidents met in San Francisco last month, both sides pledged to resume military-to-military communications and establish talks on artificial intelligence.

Andrew Mertha, director of the China studies programme at the Johns Hopkins School of Advanced International Studies, said engagement should be thought of in a “more instrumental way” that transcended domestic politics.

“But it – that is engagement – does remain a moral imperative,” he told a separate panel discussion.

“Being pro-engagement is not a political or a policy specific label. On the contrary, it transcends partisanship and rejects ideology. It indicates one’s propensity toward working with more and better information rather than with less.”

Zheng Yongnian, a professor at the Chinese University of Hong Kong, noted that political trust between China and the US was “really low”, adding that “a level of trust is a must for the two countries [to] live peacefully together”.

He said Beijing had been working to build trust, citing comments by Xi saying that China did not seek to challenge or replace the US.

“I think, as part of civil society, we really need to have more communication and more exchanges between people and between local governments,” Zheng said.

Rick Waters, managing director of Eurasia Group’s China practice, pointed out that the US government had shifted its approach.

Previously, Washington used its network of channels with Beijing to move policies in a direction where there was greater cooperation or a “common purpose”.

Oops. US President Joe Biden mixes up his Chinese leaders

But now – with US-China ties becoming “competitive fundamentally” – the Biden administration’s approach has been to use bilateral channels to “manage competitive elements of the relationship” and stabilise it where they can.

While in theory the US and China should cooperate on transnational issues such as climate change, Waters said “politics on each side makes it quite difficult”.

“What you’ve seen now is a restoration of senior-level channels and a web of carefully tailored working groups. It’s a more modest structure” he said.

This structure, he added, was built around trying to avoid miscalculations, managing competition responsibly, and building the relationship in areas like climate change and food security.

Waters said he was “quite optimistic” that the outcomes reached by the two leaders in San Francisco would be “largely durable” but ties would likely again be tested by events such as Taiwan’s elections, heightened tech competition and the US elections.

But he suggested that the current situation might be “about as good as you can get” at this stage of relations.

“There isn’t really an endgame. We have to consider that sometimes the long-term equilibrium can be one that’s unsatisfying to both sides,” he said.

“So it might be that we have to go through these periods of intense competition to reach a thaw or an equilibrium that is more realistic and honest.”

Launch of first Hong Kong school fair for mainland Chinese draws nearly 10,000 attendees, as pupils seek out less intense learning space

https://www.scmp.com/news/hong-kong/education/article/3245286/launch-first-hong-kong-school-fair-mainland-chinese-draws-nearly-10000-attendees-pupils-seek-out?utm_source=rss_feed

Nearly 10,000 people attended the launch of Hong Kong’s first education fair targeting mainland Chinese pupils on Friday, with many families hoping their children could avoid the intense academic competition across the border.

Members of the local school sector said the expo launch received a very positive response and hoped similar events could be held in the future.

The three-day GBA Hong Kong School Education Expo was organised by four major school councils and brought together more than 120 primary and secondary institutions, which represented nearly all of the city’s aided and semi-private schools.

The attendees were mainly families from the mainland, coming from cities such as Shenzhen, Wuhan and Beijing. Organisers said the event attracted nearly 10,000 parents and pupils.

“I don’t want to put my child in a mainland environment,” father-of-one Chen Li said. “The involution there is becoming more and more concerning, and I worry that it may cause psychological issues for my child.”

Chen, 40, was referring to the mainland’s burnout culture, known as nei juan, or “involution”, resulting from the intense competition and pressure faced by students of all ages.

His son was currently studying at a fifth-grade level in Shenzhen and under intense pressure to pass his high school entrance exam, he added.

“Schools in Hong Kong are more inclusive than schools in the mainland,” Chen said. “For those who grew up on the mainland like me, the only word in our heads was ‘study’. I want my boy to live a happy life instead of a tired life.”

The launch of the education fair came as Hong Kong schools contended with a shrinking student population, driven by the low birth rate and emigration waves.

Education authorities earlier projected that the number of children in Hong Kong aged six would fall to 50,000 in 2029, down from the 57,300 recorded this year, while the number of pupils aged 12 would drop from 71,600 to 60,100 over the same period.

Hong Kong schools see uptick in Form One classes; ‘student numbers to drop’

Xia Fan, a salesman from Dongguan, said the intense pressure at mainland schools was discouraging and he instead hoped his nine-year-old son could learn in a more relaxed education environment.

“The biggest advantage of Hong Kong is that people here don’t get ‘involution’,” he said.

“I will use the word ‘freedom’ to describe this city. At least my child will have more choices in life if I decide to let him study in Hong Kong. Less competition is always a good thing for parents.”

Xia said his son, a third-grade primary student in Dongguan, frequently complained that “life is boring” because of the pressure he faced to get into a good middle school.

Liu Xiaoli, a mother from Shenzhen, said she hoped her child could grow up in a more international environment in Hong Kong, adding that the range of languages spoken in the city was the biggest draw.

“I knew from today’s exhibition that many Hong Kong schools teach students in English only, which I like the most,” she said. “Schools on the mainland are not able to provide this.”

Sun Xiaohua, a mother of a four-year-old boy, said she had flown from Beijing to attend the event.

“Although my boy is still in kindergarten, I plan to let him study in Hong Kong for years,” she said. “Schools in Hong Kong can provide my children with a more diverse environment. I want him to have more choices in life when he grows up.”

Hong Kong primary schools hardest hit in education sector by UK emigration wave

Wong Wai-man, principal of GCCITKD Lau Pak Lok Secondary School in Sha Tin, said staff had already arranged for some youngsters attending the event to sit interviews and written tests on Saturday.

“The education fair has received a good response,” she said. “Most of the parents from the mainland want their kids to study the junior forms as they would like to prepare them to sit the Hong Kong Diploma of Secondary Education.”

Tsuen Wan Trade Association Primary School principal Chow Kim-ho said the most frequently asked question from mainland parents was when their children could transfer over.

“Children of parents who come today are from all grades,” he said. “Parents don’t want their children to wait for a spot for too long.”

Fierce competition for Hong Kong school spots despite emigration wave: parents

Lee Yi-ying, the chairwoman of the Subsidised Secondary School Council, one of the event organisers, said the local education environment “was comparatively relaxed” in comparison with that of the mainland.

“Every mark in the university entrance exam on the mainland counts, as there are lots of students, while in Hong Kong students are graded by different ranges of marks,” she said.

Lee said the education fair could effectively promote Hong Kong schools and nurture talent, as well as offer a solution to the city’s falling student enrolment rates.

“We will organise similar fairs in the future if the schools find this event meaningful,” she added.

‘Evil heart’: greedy woman in China condemned online for emptying US$700 from e-wallet of phone found on street

https://www.scmp.com/news/people-culture/trending-china/article/3244415/evil-heart-greedy-woman-china-condemned-online-emptying-us700-e-wallet-phone-found-street?utm_source=rss_feed

Police in China detained a 60-year-old woman in early December after she went on a shopping spree with an unlocked phone she found with 5,100 yuan (US$700) deposited in the owner’s e-wallet.

After finding the phone on the street in Sichuan province in the southwest of the country the woman, surnamed Wang, said she was shocked to discover the phone was not password-protected.

On opening the WeChat wallet, she found there was no barrier to accessing the money, so she decided to take her daughter on a shopping spree.

Wang lied to her daughter and said her new boyfriend had given her the phone with a budget to spend on shopping.

The two went to a clothing store where they spent the entire 5,100 yuan.

The duo had to make eight separate payments, all of which were under 1,000 yuan (US$140) because the password-free payment system on WeChat only allows transactions below 1,000 yuan.

The police tracked down Wang after the owner of the phone, surnamed He, reported it lost.

Wang was detained for theft, but it remains unclear what punishment she will face as the case is still under investigation.

The man who owns the phone told officers he was a manual labourer and the 5,100 yuan was cash he had saved up to cover his grandson’s living expenses.

The story went viral on the mainland social media, with many people condemning the woman.

“Can the money be retrieved? After all, this poor man had to work hard to earn his savings,” said one person online.

“This woman has an evil heart. Did she not feel shame when spending other people’s money?” asked another online observer.

While a third person said: “This case shows why it is crucial to set up passwords for your mobile phone and other online payment platforms.”

Will more assertive Philippine approach to South China Sea pay off in long run?

https://www.scmp.com/news/china/diplomacy/article/3245197/will-more-assertive-philippine-approach-south-china-sea-pay-long-run?utm_source=rss_feed

Philippine coastguards have escorted boats to the South China Sea to resupply its military base on the disputed Second Thomas Shoal seven times in the past four months.

Each time, they have complained about China’s coastguards and maritime militia obstructing their journey to the disputed reef in the South China Sea or making dangerously close passes.

On Sunday, a steel-hulled Chinese coastguard ship used its water cannon against a much smaller Philippine supply boat and eventually collided with it in the most serious confrontation between the two sides in a year.

The Philippines said afterwards that the incident had damaged the boat’s engines, “disabling the vessel and seriously endangering the lives of its crew”.

It followed a similar collision in late October, again involving a Chinese coastguard ship and supply vessel.

Manila has chosen to publicise these confrontations ever since an incident in February, when Chinese coastguards shone a military-grade laser beam at Philippine boats near the Second Thomas Shoal and temporarily blinded a crew member. It calculates that publicity will help increase international support for its position.

“I believe that our effort in the transparency initiative has been very successful in rallying support from the international community to condemn the illegal actions of China and to make the Filipino people aware of what’s happening,” Commodore Jay Tarriela, a spokesman for the coastguard, said last month after another confrontation where Chinese forces used water cannons against Philippine ships.

After the confrontation on Sunday, the United States, a long-term ally of Manila, said the Chinese ships had acted dangerously and warned that an armed attack on the Philippine coastguard could trigger their mutual defence treaty.

Sweden, Britain, New Zealand and Germany called for international law and an arbitration ruling that invalidated Beijing’s sea claims to be respected. Meanwhile, Australia, Japan and the European Union echoed the US in describing China’s actions as “dangerous”.

But although Manila appears confident in the strategy, diplomatic observers are sceptical about its long-term chances of success and whether it can prevent future confrontations between Chinese ships and those from the other South Sea claimants.

They say that even if Beijing and Southeast Asian countries can agree a code of conduct for the disputed waters, no one can be sure it will change Chinese behaviour, especially when its crews are increasingly well-prepared and well-equipped for future confrontations.

The dispute began in 1999, when Manila deliberately grounded a second world war ship, the Sierra Madre, on the shoal after China began building on Mischief Reef, another disputed territory around 30km (19 miles) from the Second Thomas Shoal.

The ship, although it is rusting and needs regular resupply, now serves as a military base. Beijing has demanded its removal.

Manila’s current publicity drive has seen the government releasing video footage and photos that show Chinese ships following, surrounding and sailing close to its vessels – often leaving just a few metres between the ships.

The country’s national security council and other officials have also taken to social media to rebut China’s claims about the encounters, while Filipino and foreign journalists have been invited onto coastguard ships during resupply missions to troops stationed on the reef.

The series of confrontations have united Filipinos across the political divide in support of the government’s stance – a process that has gained momentum since August, when, for the first time this year, Chinese coastguards fired a water cannon at ships carrying supplies to troops stationed on the disputed reef and their coastguard escorts.

The strong response from Manila signals a change in policy since President Ferdinand Marcos Jnr took office in June last year.

South China Sea: China’s envoy to Philippines protests over weekend clashes

His predecessor, Rodrigo Duterte, had sought warmer ties with Beijing while trying to distance himself from the United States.

“This is part of shaping the narrative in the South China Sea and preventing Chinese state propaganda from changing the status quo in the international public opinion space,” said Rommel Jude Ong, a professor at the Ateneo School of Government in Manila.

The Philippines often cites a 2016 ruling by an international tribunal that invalidated Beijing’s extensive claims to the waters of the South China Sea, based on ancient maps and accounts of historical fishing activity, and marked out by the so-called “nine-dash line”.

The Permanent Court of Arbitration in The Hague said the historic rights to resources in the waters claimed by Beijing disappeared when it signed the United Nations Convention on the Law of the Sea in 1982.

The tribunal also ruled that the Second Thomas Shoal, known in China as Renai Jiao and in the Philippines as Ayungin, is only exposed at low tide and submerged at high tide, which prevents the waters around it from being claimed as a territorial sea or exclusive economic zone.

Beijing has rejected the ruling and declined to take part in the proceedings, saying that the court did not have the power to decide on issues of sovereignty. The court said its decision did not touch on those issues.

Ong, who is also a retired rear-admiral of the Philippine Navy, said that beyond its public relations campaign, Manila also needed to work with countries such as Japan, Australia, Britain and France – as well as the US – on defence and security.

Japan and the US have been vocal in supporting Manila’s complaints of Chinese coastguards near the Second Thomas Shoal.

Ong also said it would be “the ideal and logical strategy” for the Philippines to band together with other Southeast Asian claimants in the South China Sea – Vietnam, Malaysia and Brunei – to “generate the gravitas to mitigate the asymmetry of power between Asean [the Association of Southeast Asian Nations] versus China”.

Philippines stands out in Asean over embrace of US’ Indo-Pacific strategy

“But this is not to be,” he said. “The dynamics with Asean, and the nature of the bilateral relationship of the other claimants, prevents such possibility.

“A divided Asean – and claimants – allows the CCP [Chinese Communist Party] to assert its position in the South China Sea with minimal challenge.”

The bloc prefers to adopt a collective approach to discussing the claims, but Beijing talks to Asean as a whole while also negotiating bilaterally with each of the claimant countries.

Talks between China and Asean on agreeing a code of conduct (COC) to prevent collisions and accidents at sea have been delayed for years, partly as a result of Covid-19.

The process has also been delayed due to disagreements between countries with stronger economic and political ties with Beijing and those with a more distant relationship over issues such as whether to include third parties, for example, the US, in the dispute or the legitimacy of the 2016 Hague ruling.

China and 20 other countries also signed the non-binding Code for Unplanned Encounters at Sea (Cues) in 2014 to prevent accidental clashes, but that code does not cover coastguards and militias.

“As neither an expanded Cues nor the COC have been finalised – and probably won’t be for the foreseeable future – they won’t have any impact on influencing China’s behaviour,” said Ian Storey, a senior fellow at the ISEAS-Yusof Ishak Institute in Singapore who focuses on maritime security.

“Whether the final agreements will do so depends on two things: first, how strong their provisions are; and second, whether China chooses to abide by them or not.”

Philippines ‘brainstorming’ against ‘more coercive actions’ from China at sea

Zhou Chenming, a researcher at the Yuan Wang military science and technology think tank in Beijing, said the best way to prevent inadvertent clashes was to maintain close communication. He said unlike in the past, the PLA Navy’s training programme covers how to make close encounters with other ships while avoiding collisions.

“After Chinese forces became more combat-oriented, [the PLA] has taken the initiative to deal with such crises,” Zhou said.

Ong also said the code of conduct and Cues would have no impact if China refused to abide by the rules.

He said the strategy of exposing Beijing’s actions near the Second Thomas Shoal should be paired with matching China in its sustained maritime presence and in protecting economic activities in the Philippine exclusive economic zone, which includes the Second Thomas Shoal.

He also said Asean should build up its Asean Coast Guard Forum as a “norm-setting institution” for Southeast Asia.

“In the future, it might be a significant player that can impose reputational costs on China and other countries that employ its maritime agencies as tools of coercion.”

How AI is helping Chinese short dramas storm the West

https://www.scmp.com/news/china/science/article/3245227/culture-revolution-how-ai-helps-chinese-short-dramas-storm-west?utm_source=rss_feed

Storytelling comes in many forms, but in the online world, where new digital technology can be quickly leveraged, bite-sized, episodic programmes – known as micro-series – are steadily gathering loyal fandoms, especially in America and Europe.

One tale may tell the story of a woman who feels trapped in a marriage to a man she deems a failure, only to reveal the shocking truth of his hidden business empire. Another plot may follow a woman’s romantic journey with a kind-hearted man, only to learn he is a family adversary, bent on seeking revenge.

The brief but intense dramas are fast paced and can be irresistible to watch, or even addictive for viewers who enjoy shows optimised for their digital devices.

“It’s an old routine, but I’m so invested,” said a fan of one micro-series.

“I was embarrassed by the plot, but I really want to watch the next episode,” admitted another.

Entertainment, media in China set to drive US$479.9 billion in revenue: PwC

But while most short video episodes are still made with real performers, artificial intelligence has begun to allow producers to manipulate the age, ethnicity and appearance of performers, two separate industry insiders confirmed to the Post this month.

In fact, some well-known micro-series, or “real short shows”, that featured what appeared to be European settings and European actors, were actually produced in Chinese studios with Chinese performers, the sources said.

The sources declined to name these series, and the Post cannot independently verify the claims.

Micro-series, which typically consist of a few dozen episodes, each about one to two minutes in length, offer a wide range of themes – from gripping dramas to heart-pounding suspense

With some series featuring more than 50 episodes, some of these pocket-sized programmes have become wildly popular in global markets, keeping viewers on the edge of their seats with engaging narratives, surprising plot twists and irresistible storytelling.

Chinese companies have taken a leading role in scripting and producing micro-series, which are seen around the world. The studios usually hire European and American actors to help draw viewers into the intricate storylines.

The practice, according to the insiders, is aimed at simply boosting sales in foreign markets. But the trend also reveals the profound impact of technology on the global entertainment industry and raises questions about authenticity, integrity and ethics in the performance arts.

Will AI take over K-pop? Human composers are worried it will. Here’s why

The practice has also sparked debate about where the line between reality and fiction should be drawn in the age of AI.

One of the platforms that hosts these micro-series is Reelshort, which topped the entertainment charts for the first time ever in November, surpassing TikTok and other apps in the Apple store.

Producers at Reelshort faced a steep learning curve with its early shows. They found that simply adding English subtitles to Chinese short dramas for Western audiences did not generate viewership. When producers began using Western actors and modifying plots with elements like werewolves and vampires, their shows began to resonate.

Ye Jingfei, a visual engineer who works in the micro-series industry, said the procedure of transforming a popular series from Chinese to English was complex.

First, video producers use AI translation software to replace subtitles and dubbing. AI face-swapping technology is then introduced to adapt characters to resemble Western actors. The technology also makes it possible to manipulate a character’s skin colour, age and ethnicity.

“These AI-assisted productions lack the finesse of locally produced shows, but their viral-style editing and low production costs make them easy to replicate,” Ye said.

“Currently, shooting a micro-series with actors overseas can cost upwards of US$150,000. In contrast, AI-assisted productions can be made for around US$100,000,” he said.

However, the techniques have limitations, such as the need for manual correction and synchronisation. Also, the quality of AI-generated content can vary.

“Most companies use Text-To-Speech, a machine-generated voice. It still lags in capturing the nuances of scenes and emotions. We use so-vits-svc (SVC), a more sophisticated voice conversion technology. SVC can learn one person’s voice and replace the timbre of another soundtrack and thus achieve an effect similar to post-dubbing,” Ye said.

With business booming, Ye said he hoped to offer offline training courses at Hengdian World Studios to teach technicians AI face-swapping and dubbing techniques. Hengdian, in eastern China’s Zhejiang province, is one of the largest film studios in the world, and is where most Chinese micro-series are produced.

The micro-series business model offers initial episodes for free, with later episodes available for a fee. A Shenzhen-based producer said that some series with production costs in the hundreds of thousands of dollars had earned r hundreds of millions of dollars, a high return on investment.

“Most series will not sell. It doesn’t matter. We only need one that hits the charts. Then it will become a money-printing machine for us,” said the producer, who asked not to be named.

“With the help of AI, the profit margin and turnover rate can increase significantly.”

Following the success of web novels like Coiling Dragon, popular Chinese micro-series could represent a new wave of exotic entertainment products that challenge the traditional cultural dominance of Hollywood movies and streaming services like Netflix.

AI is rewriting the rules of US$200 billion video games industry

“It’s not award-winning, but if you want some enjoyable trash, this is the place to get it,” commented one TikTok user.

With more capital flowing into the industry sector, even professional Hollywood actors are now performing in these productions, according to anonymous industry sources.

“Micro-series offer a new genre that surpasses traditional media in terms of creativity and flexibility. These series were honed in the Chinese market before capturing Western audiences with their insights into human addiction,” Ye said.

“This success is a testament to the deep understanding and resource accumulation of Chinese companies in content operation. It’s a new set of ideas for exporting Chinese IP overseas.”

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Chinese University of Hong Kong brings on board 5 political, business heavyweights to join governing body, weeks after revamp bill passed

https://www.scmp.com/news/hong-kong/education/article/3245235/chinese-university-hong-kong-brings-board-5-political-business-heavyweights-join-governing-body?utm_source=rss_feed

Five political and business heavyweights have joined the governing council for the Chinese University of Hong Kong (CUHK), weeks after the city’s legislature passed a bill to revamp the body.

Friday’s appointments included Pro-Vice-Chancellor Poon Wai-yin, New World Development executive director Sonia Cheng Chi-man and Hong Kong Science and Technology Parks CEO Albert Wong Hak-keung.

The other two are Peter Kung, a former vice-president of KPMG China and a National Committee member on the Chinese People’s Political Consultative Conference, the country’s top political advisory body, as well as Dr Luk Che-chung, the former chief executive of the Hospital Authority’s Hong Kong West Cluster.

Two days before, the council suddenly decided to sack its secretary, university vice-president Eric Ng Shu-pui.

He had previously signed a petition against the body’s restructuring proposed by three lawmakers and was accused of sending out a meeting agenda without the chairman’s consent.

According to the university’s website on Friday, Poon’s appointment was “determined” by the council and the body had “appointed” the other four members, who are all Hong Kong residents. At least one of the group is a university alumni.

The council had 23 members as of Friday, with only three of the body holding internal positions within the university. Further appointments are expected.

CUHK on Friday said it welcomed the continued progress on council appointments and looked forward to more members joining the body.

Chinese University of Hong Kong fires vice-president caught up in reforms row

Deputy university secretary Amelia Wong Chan Wai-ping was appointed to take over the position.

On November 1, the Legislative Council passed a controversial bill to shake up CUHK’s governing body.

The proposal included reducing the council from 55 members to 34, bringing down the proportion of academic councillors and increasing the voting threshold for approving appointments for the dual office of university president and vice-chancellor.

On Wednesday, the council fired vice-president Ng with immediate effect and said it no longer had confidence in his ability and willingness to support the institution’s work.

Ng expressed “extreme regret” about the decision, saying he was not given a chance to respond to the allegations during an investigation.

Hong Kong auditor brushes off accusations it targeted Chinese University

The university, one of the oldest in Hong Kong and consistently placed in highly regarded annual rankings, has fallen under the spotlight in recent years.

Last year, University vice-chancellor Rocky Tuan Sung-chi drew the ire of the pro-establishment camp in response to his reappointment.

Some of the political bloc had argued the decision amounted to rewarding Tuan for his performance amid the 2019 social unrest, during which he was accused of showing sympathy towards protesting students.

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China must work on trade and trust with EU if it wants warm long-term ties

https://www.scmp.com/comment/opinion/article/3245089/china-must-work-trade-and-trust-eu-if-it-wants-warm-long-term-ties?utm_source=rss_feed

When top European Union officials landed in China last week for the EU-China summit with President Xi Jinping, they had a long list of concerns.

The visit by the power trio of European Commission president Ursula von der Leyen, European Council president Charles Michel and EU foreign policy high representative Josep Borrell – which came after visits by the commission’s vice-presidents Valdis Dombrovskis and Vera Jourova – is part of a build-up that saw increasingly high-level visits taking place in both Brussels and Beijing.

At the EU-China summit, significant trade imbalances were at the top of the EU agenda. Especially driven by concerns of member states such as Spain and Italy, Michel and von der Leyen asked Xi for meaningful action to address what they see as major obstacles to Europe’s market access to China.

In this context, Italy’s recent decision to leave the Belt and Road Initiative is noteworthy. Italy was the largest economy in the world to have signed up to the Chinese plan. Unfortunately, its departure is part of an emerging trend of European countries scaling back their cooperation with China.

Estonia, Latvia and Lithuania have left a cooperation framework established between China and several central and eastern European countries, with the Czech Republic increasingly critical of the format.

Meanwhile, Brussels has made clear it will press ahead with its “de-risking rather than decoupling” strategy. A loosening of the economic relationship between the EU and China is bad news for both parties and should be avoided. The question is if and how the existing trade imbalances can be corrected.

Beyond trade and economics, the focus was on Ukraine and the Middle East. On the former, Brussels asked Beijing to use its leverage with Moscow to bring an end to the conflict. While no significant breakthrough is expected, the EU sees China’s non-provision of lethal weapons to Russia and the non-circumvention of sanctions on Russia as crucial to building mutual trust.

Brussels has made clear that, if necessary, it is prepared to impose sanctions on Chinese companies and asked President Xi to take steps to address Europe’s concerns. On the Israeli-Palestinian conflict, both sides are advocates of a two-state solution.

In private conversations, European officials welcome, and actually encourage, a more active role for China in global diplomacy. The hope in Brussels is that the conflict in the Middle East and Russia’s invasion of Ukraine might provide opportunities to nurture diplomatic synergies.

Ultimately, these are the testing grounds where the viability of a mutually beneficial long-term relationship between Europe and China will be assessed.

Within a challenging context, not everything is doom and gloom. Beyond economics and security, there are a number of policy areas where slow but tangible progress is taking place. Brussels and Beijing are, for instance, playing a major role in the drafting of an international treaty on pandemic preparedness and management as advocated by the global public health community.

And good news might in time emerge when it comes to the provision of a variety of global common goods. Biodiversity, governance of the oceans, plastic pollution, deforestation and food security are all areas where China and Europe are finding common ground. The setting up of ad hoc working groups on wine and spirits, cosmetics, export controls and financial regulation is aimed at defusing possible tensions before they spiral out of control.

On climate change, Brussels is eager for Beijing to play an even more ambitious role by joining the EU’s efforts on the Global Methane Pledge, tripling its renewable energy capacity and doubling the rate of energy efficient improvements by 2030.

How China and EU can transcend zero-sum mindsets and create a better world

This latest EU-China summit was underpinned by a fundamental disconnect in terms of perceptions. On the one hand, Beijing views the relationship with Europe as characterised by significant challenges but, overall, satisfactory. On the other hand, Brussels is deeply unhappy with the nature of its relationship with China.

To be sustainable in the long term, any relationship must ensure that all parties are satisfied with it. This is manifestly not the case at present and change is coming. Hopefully, this will be by common agreement.

Quirky China: man in shop kills rat with bare hands, spicy grilled ice cubes, Shanghai sunflower performance artist splits opinion

https://www.scmp.com/news/people-culture/trending-china/article/3244408/quirky-china-man-shop-kills-rat-bare-hands-spicy-grilled-ice-cubes-shanghai-sunflower-performance?utm_source=rss_feed

A man in China killed a rat by slapping it six times in just four seconds, delighting people on mainland social media who have praised him for “getting rid of a public nuisance”.

The rodent was running through a supermarket in Zhejiang province in eastern China on December 3 and the quick-thinking man decided to take matters into his own hands, according to china.com.cn.

Surveillance footage shows him hitting the rat – first against a wall and then on top of a refrigerator – and then slamming its body on the floor to make sure it was dead. He then stomps on it to make doubly sure.

“He was aware of the risk from slapping the rat with his bare hands, so he did it quickly so that the rat had no time to bite him,” a neighbour told the media.

One online observer joked: “He is awesome! Even a cat is not as quick as he is.”

“The rat’s relatives probably left the supermarket immediately,” quipped another.

Spicy ice cubes

A weird new street food dish from northeastern China has caught the imagination of mainland social media – spicy barbecued ice cubes.

The dish first appeared in night markets in the southern province of Hunan, and – for 15 yuan (US$2) per dish – a person can enjoy an ice cube covered in red chilli flakes, green onions and spicy sauce.

In a viral video, a food stall owner asks a customer if she wants her ice cubes to be “grilled tough or tender?” Unsure how to answer, she hesitantly replies: “A bit tender, please.”

The meal is apparently a traditional snack from northeastern China, but that claim is up for debate.

“I am a native of northeastern China, and honestly, I’ve never seen this dish in my life,” said one person online.

Regardless, the unusual ice cubes are capturing attention both inside and outside of China.

“I wonder if the person feels hot or cold after eating this,” another person said.

Earlier this year, a dish in which people sucked on stir-fried small river stones became a popular food trend in China.

A 23-year-old performance artist who dressed as a sunflower while posing at famous Shanghai landmarks has brought joy and created controversy on mainland social media.

Identifying himself as Classmate Xiaogang, the man said he had become a “walking sunflower”.

He shifted between squatting on the road and raising his head towards the sun, like a sunflower basking in the sun, or asking pedestrians to spray water on him, similar to watering a plant.

He also invited strangers to wear another sunflower headgear and pose with him.

“I hope your life will be bright every day,” he told people on the street.

Xiaogang said he aimed to inspire the public to think outside the box. His videos have attracted 150,000 likes on Douyin.

“So wonderful! It’s a slice of warmth in winter,” said one online observer.

But others took a different view: “He doesn’t feel shame? I think the authorities should do something to stop his performance,” said one person online.

Chinese game makers Tencent, NetEase tout ‘social values’ in biggest titles as regulatory crackdown weighs on industry

https://www.scmp.com/tech/big-tech/article/3245170/chinese-game-makers-tencent-netease-tout-social-values-biggest-titles-regulatory-crackdown-weighs?utm_source=rss_feed

China’s top video gaming companies have taken advantage of an annual industry gathering in Guangzhou on Thursday to pledge their commitment to “social values” to bolster trust with Beijing amid heightened regulatory scrutiny.

At the annual event hosted by the Game Publishing Committee of the China Audio-Video and Digital Publishing Association, delegates from gaming giants including Tencent Holdings, NetEase and miHoYo stressed the “social responsibility” of their biggest titles.

Su Panhui, a producer for League of Legends in China at Tencent’s Interactive Entertainment Group, reiterated the “Tech for Good” slogan first touted four years ago by Pony Ma Huateng, founder of the Shenzhen-based tech giant.

“Tech for Good is one of Tencent’s missions and visions, and League of Legends is adhering to this to make the world warmer,” said Su, adding that the title developed by US subsidiary Riot Games has contributed to more than 10 philanthropic projects covering environmental protection and medical service improvements over the past decade.

ByteDance retreat from video games shows even mighty can fall in risky market

Liu Jie, senior director of NetEase’s Gaming Social Responsibility Promotion Centre, said the Hangzhou-based company has been working to include traditional culture and “patriotic spirit” in titles such as the popular casual game Eggy Party. The goal is to better shape the values of young people while they are playing, Liu said.

Liu also noted that the company has worked with smartphone makers including Huawei Technologies and Xiaomi to prevent over five million “high-risk activities” by minors in the past two months.

miHoYo, the creator of blockbuster titles Genshin Impact and Honkai: Star Rail, is also integrating elements of Chinese culture and geography into its anime-style games. This includes the picturesque karstic landscape of Guilin and traditional local opera in Genshin Impact, according to Ge Shangqing, who is responsible for social responsibility and public welfare projects at the Shanghai-based studio.

The remarks reflect Beijing’s efforts to curb the perceived social ill of video game addiction among minors. China implements one of the world’s most restrictive video game regulations, limiting people under the age of 18 to playing between 8pm and 9pm on Friday, Saturday, Sunday and statutory holidays.

The Cyberspace Administration of China, the country’s internet watchdog, is set to implement a new rule starting from January that aims to curb internet addiction and foster socialist values among children and teenagers. It will require a “minor mode” on electronic devices including smartphones, laptops and digital wearables that will restrict usage based on age group. Developers of mobile apps and mini programs must also include this function.

Zhang Yijun, director of the Game Publishing Committee, said there are still loopholes in the implementation of existing rules to keep kids away from screens. For instance, around a third of people under 18 are still using their parents’ identity information to register game accounts and bypass the limit.

As the industry faces regulatory pressure and a slow economy, some companies have retreated from what was once seen as a lucrative path to boosting revenue.

TikTok owner ByteDance significantly scaled down its flagship video game studio Nuverse in November. Bilibili, a video streaming platform, has also faced challenges in its foray into video gaming.

China’s Haichang Ocean Park gets support from Saudi Arabia’s Tourism Development Fund to build marine themed park in kingdom

https://www.scmp.com/business/article/3245182/chinas-haichang-ocean-park-gets-support-saudi-arabias-tourism-development-fund-build-marine-themed?utm_source=rss_feed

The owner of Asia’s biggest ocean park has signed an agreement with Saudi Arabia’s Tourism Development Fund (TDF) that will pave the way for the funding of a new marine themed park that forms part of the kingdom’s drive to boost tourism.

Hong Kong-listed Haichang Ocean Park, which operates six parks in mainland China, inked a non-binding agreement with the TDF, according to a filing with the Hong Kong exchange on Friday.

In April, Haichang signed a memorandum of understanding (MOU) with Riyadh that clinched a deal for it to become the first ocean park brand and service industry provider from China to enter the Saudi Arabia.

“The board is of the view that the cooperation marks significant progress in the group’s benchmark project for ‘going global’ … and is of strategic significance in the company’s internationalisation process,” said Qu Naijie, executive director and chief executive officer of Haichang.

“The cooperation will integrate the advantageous resources of both parties and help the group to establish an international brand, and to build a worldwide leisure and entertainment platform featuring marine culture.”

TDF, which was established in 2020 and has capital of US$4 billion, will help to identify potential sites for the project, which is part of the kingdom’s vision to attract 100 million visitors by 2030 and to boost the tourism sector’s contribution to the economy to 10 per cent.

The agency’s stated aim is to facilitate local and international investors’ access to tourism investments across key destinations in Saudi Arabia.

“Acting as the development manager of the project, we aim to pioneer the development of a world-class, first of its kind, integrated marine theme park resort in Saudi Arabia, which will become a fully integrated destination,” Qu said in the filing.

Under the agreement signed in April, Haichang will develop various forms of entertainment venues, such as family entertainment centres, water parks, IP themed parks, zoos and safari parks in various Saudi cities, creating jobs in the process.

Ocean parks typically have venues for animal performances, and other recreational facilities.

It is envisioned that the new Saudi park will become a platform to promote ocean conservation, Haichang said.

Haichang owns and operates parks in the mainland Chinese cities of Dalian, Qingdao, Chongqing, Chengdu, Tianjin, Wuhan and Yantai. It has also licensed its brand to four other parks.

The group is also developing a network of Aquarium and Discovery Centres in China, aiming to have 50 venues by the end of the year.

It reported an overall gross profit of about 202.9 million yuan (US$28.4 million) in the first half of the year, higher by 27.1 per cent than the same period in 2022, according to its latest financial report.

Beijing accuses Taiwan of import ‘barriers’ that have taken toll on mainland Chinese firms

https://www.scmp.com/economy/china-economy/article/3245173/beijing-accuses-taiwan-import-barriers-have-taken-toll-mainland-chinese-firms?utm_source=rss_feed

Taiwan has placed “barriers” on the imports of numerous goods and sidestepped the spirit of a landmark trade agreement, mainland China’s Ministry of Commerce said on Friday.

The findings threaten to further strain already-tense relations just weeks before the island’s presidential election.

An eight-month probe found that Taiwan was blocking 2,509 mainland Chinese mineral, agricultural and textile goods from reaching the island, the ministry said on its website.

The ministry “determined that Taiwan’s trade restrictions on the mainland constitute a trade barrier, with a negative impact on trade for related industries and enterprises in mainland China”.

A cross-strait trade and economic deal signed in 2010 said both sides should reduce or eliminate trade barriers, but the “scope of prohibited imports of mainland products has shown an expansion trend in recent years”, the ministry said.

Mainland China aims to cultivate farming ties with Taiwan amid tense relations

The State Council’s Taiwan Affairs Office said in a separate statement on Friday that the evidence was clear, calling the investigation results fair and objective – reinforcing its stance from August that had been based on preliminary findings.

Measures taken by Taiwanese authorities have violated the commitment to reduce tariff and non-tariff barriers in the Economic Cooperation Framework Agreement (ECFA), which have hurt the interests of mainland companies and consumers in Taiwan, said Zhu Fenglian, spokeswoman for the office.

“We support relevant authorities investigating and taking corresponding measures in line with regulations, based on the full findings of the investigation,” Zhu said.

Beijing could potentially suspend all or part of the ECFA, analysts said. The agreement includes an 806-item list of goods approved for tariff reductions, and the list covers some of the items that mainland China investigated this year.

Mainland officials launched the probe at the request of domestic trade associations.

Mainland commerce authorities did not specify on Friday what the plan was to respond to the findings.

Taiwan’s Ministry of Economic Affairs said in a statement on Friday afternoon that Taiwan was ready to hold talks about its trade disputes with the mainland in accordance with the rules and mechanisms under the World Trade Organization.

Mainland China may announce countermeasures closer to Taiwan’s January 13 presidential election, said Huang Kwei-bo, an associate professor of diplomacy at National Chengchi University in Taipei.

Friday’s announcement, he said, is “a sign that this thing is still ongoing, and China can take countermeasures”.

“It’s not totally over,” Huang said.

Taiwan’s presidential election is expected to influence future cross-strait relations following nearly eight years of increased tensions. Mainland China sees self-ruled Taiwan as a breakaway territory that must be united with the mainland, by force if needed.

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UK ‘vulnerable’ over its dependency on China for rare minerals

https://www.scmp.com/news/world/europe/article/3245143/uk-vulnerable-over-its-dependency-china-rare-minerals?utm_source=rss_feed

The UK has been left “vulnerable” over its dependency on China for critical minerals needed to make key everyday items such as smartphones, British lawmakers said in a report on Friday.

The Foreign Affairs Committee, a cross-party panel of parliamentarians, highlighted the fallout from the UK’s dependence on the world’s second biggest economy for rare metals such as lithium and cobalt.

“The UK’s critical minerals supply chains are vulnerable due to our continuing dependence on autocracies - in particular China - and the inaction of successive UK governments,” the report concluded.

Entitled “A rock and a hard place: building critical mineral resilience”, the study described critical minerals as possessing “strategic significance to the UK”.

It added they were “essential” to the nation’s “economic security and to meeting... climate change targets”.

The report follows the government’s launch last year of the UK’s first critical minerals strategy aimed at improving security of the key commodities.

Chinese embassy condemns UK’s ‘flagrant interference’ in Hong Kong affairs

The committee criticised “the government’s decision not to assess the vulnerabilities and dependencies in the UK’s industrial supply chains before producing” the strategy.

It called on the Conservative government, led by Prime Minister Rishi Sunak, “to publish specific targets for priority sectors and to provide a more detailed implementation plan”.

Committee chair Alicia Kearns, a lawmaker within Sunak’s party, noted that “from F35 fighter jets to the batteries in our phones, critical minerals are the building blocks of many modern technologies.

“They are integral to every-day living, the green transition and our nation’s defence.”

But she added that the UK needed “to confront the weakness created by our dependency on a single state: China. These minerals power modern life and if China pulls the plug, we will all pay the price”.

Outside the UK, the European Union last month agreed a plan to secure its own supply of critical raw materials, as Brussels seeks to reduce its dependence on other countries, notably China.

Brussels is particularly concerned about falling behind during the transition to cleaner technologies that rely on the critical minerals.

China is widely seen as having already made great strides because of its access to raw materials, while the United States has poured billions into subsidies for green tech.

Critical raw materials, including rare metal tungsten, are needed to make the most of the electrical products consumers use today.

China’s once-hot real estate trusts get slammed as property slump spills over to dent demand

https://www.scmp.com/business/china-business/article/3245146/chinas-once-hot-real-estate-trusts-get-slammed-property-slump-spills-over-dent-demand?utm_source=rss_feed

A double whammy of China’s deepening property crisis and a stock market slump has claimed a victim – real estate investment trusts.

REITs debuted on the country’s stock market in 2021 with much fanfare, hailed as a way to channel retail investor money into large-sized infrastructure and property projects. The idea initially caught on, making them one of the hottest investments amid the government’s infrastructure push and relatively scarce offerings.

Not any more. A CSI gauge of 28 trusts has lost 31 per cent this year, underperforming the benchmark CSI 300 Index by 18 percentage points. All but three of the listed REITs are trading below their debut prices, according to data compiled by Bloomberg.

Some of the hardest hit include Fullgoal Capital Water Close-end Infrastructure Fund – linked to a waste-water treatment project in eastern Anhui province – which has fallen in all but one day over the past month. The CCB Principal Zhongguancun Industrial Zone Close-end Infrastructure Fund, which leases land in Beijing, has dropped nearly 50 per cent this year.

Reits with Chinese characteristics: what do they mean for investors?

“The performance of REITs depends on the fundamentals of their related sectors, which are largely tied to the macro economy,” said Fu Lichun, co-founder of Beijing Yuntai Capital. “Their prices have gravitated to lows amid poor stock market sentiment. The fact that they are a fairly new asset class does not make them exempt from downturns.”

China has been experimenting with REITs to tap the world’s second-largest equity market to finance projects that would’ve otherwise been funded by local governments. The allure of payouts on annual income from operational projects, and potential stock market gains, had attracted retail investors in the early months of their launch.

China’s expanded Reit scheme to ease funding in commercial property market

If successful, they would’ve been a win-win for both individual investors and regional governments by giving the former an affordable access to China’s gigantic infrastructure projects, while lessening the debt burden for the latter.

Yet an unprecedented downturn in the property market, weak rental demand amid a sluggish economy, and a relentless slide in equity prices have made REITs a losing bet. About half of the trusts are tied to property market performance as they lease land, office space or apartments. The rest invest mostly in infrastructure like roads and environmental facilities.

In September, the Zhongguancun Fund warned of sluggishness in Beijing’s office rental space amid a slowing economy, anticipating higher vacancy rates and falling prices. The HuaAn Zhangjiang Everbright Park Close-end Infrastructure Fund in October stated that one of its key tenants has surrendered its lease, leading to a drop of 39 percentage points in occupancy rate for one of its properties from a year ago.

Is Evergrande too big to fail?

Policy push for the asset class has continued despite the plunge in shares. A draft guideline issued earlier this month allows the national pension fund to incorporate such trusts into portfolios. And while the poor performance has raised awareness of the risks, some analysts believe that the slide has made them a better deal.

REITs valuations have become attractive, and it has become apparent that there is a wide disparity between different trusts in their exposure to cyclical impact, Citic Securities analysts including Ming Ming wrote last month in a 2024 outlook note. “We see opportunities to bargain hunt in the short term, and recommend affordable housing, energy and environment protection trusts.”

China’s ‘unluckiest’ railway, Hong Kong actress Kathy Chow’s most memorable roles: SCMP’s 7 highlights of the week

https://www.scmp.com/news/china/article/3245149/chinas-unluckiest-railway-hong-kong-actress-kathy-chows-most-memorable-roles-scmps-7-highlights-week?utm_source=rss_feed

We have selected seven stories from this week’s news across Hong Kong, mainland China, the wider Asia region and beyond that resonated with our readers and shed light on topical issues. If you would like to see more of our reporting, please consider .

It was once a symbol of China’s progress, now it is a reminder of the limits of humanity. The Lanxin Express between Lanzhou and Urumqi was hailed in 2016, but a quake in Qinghai province and a damaged rail tunnel forced Chinese engineers and scientists to rethink how best to build high-speed railway lines.

Actress Kathy Chow Hoi-mei, who died in a Beijing hospital aged 57 from an unknown illness on December 11, was best known for her many roles in TV drama series produced not only in Hong Kong but also Taiwan and mainland China.

The Philippines has been accused of “neglect” for giving repatriated Filipino-Palestinian families limited funds and only a three-day hotel stay on their return from Gaza.

A team of Chinese researchers has developed an anti-ageing hydrogen therapy that could effectively rewind age-related changes in the body and potentially prevent geriatric diseases.

The mystery of why vast numbers of sardines and chub mackerels washed up dead on a beach in northern Japan late last week may have been solved, with concerns that the fish had been affected by a powerful pollutant ruled out.

Hong Kong has joined a Fifa scheme to get more children playing football. Its next task is to stop them quitting and emigrating when they are older.

Millennials – those born between 1981 and 1996 – are more health-conscious than preceding generations but are seeing their health decline faster than that of their parents as they age. Here’s why — and how they can slow the process.

‘Probably no coincidence’: China launches space plane close to planned X-37B take-off date but US rival still grounded

https://www.scmp.com/news/china/science/article/3245151/probably-no-coincidence-china-launches-space-plane-close-planned-x-37b-take-date-us-rival-still?utm_source=rss_feed

China launched its secret space plane for a third time on Thursday, while the US Space Force is still waiting for its X-37B to get off the pad after multiple delays.

The Chinese “reusable experimental spacecraft” successfully lifted off atop a Long March 2F rocket from the Jiuquan Satellite Launch Centre in the Gobi Desert, state media Xinhua reported around 11pm.

As with the previous two launches in 2020 and 2022, Xinhua did not reveal technical details or images of the spacecraft, nor did it mention how long the flight would be.

“It’s going to operate in orbit for a period of time before returning to its intended landing site in China,” the report said.

“Reusable technology verification and space science experiments will be carried out to provide technical support for the peaceful use of space,” the report said, employing the same wording it used for the 2020 and 2022 missions.

Jonathan McDowell, a Harvard astronomer who tracks rocket launches and space activities, said the uncrewed plane was being tracked by the US Space Force in a 333 x 348km orbit inclined 50.0 degrees.

“This is very similar to the first launch in 2020. The second launch in 2022 went to a slightly higher orbit of 345 x 593km,” he said.

Originally scheduled to take off at a similar time, its US counterpart Boeing X-37B remains grounded atop a SpaceX Falcon Heavy rocket at the Kennedy Space Centre in Florida, after postponements attributed to poor weather and launch site issues.

The mission, known as USSF-52, will be the US plane’s seventh mission to orbit since 2010 and its second ride with a SpaceX rocket.

It plans to conduct a wide range of tests, including operating in new orbital regimes, experimenting with future space domain awareness technologies and investigating the effect of radiation on materials, a Space Force statement said in November.

Chief of Space Operations General B. Chance Saltzman said the X-37B’s future could be brighter than ever thanks to China’s competition with the Pentagon.

China’s lunar base: major African nation joins international moon project

In fact, it was “probably no coincidence” that the Chinese space plane planned to launch around the same time as the X-37B, Saltzman was quoted by an Air & Space Forces magazine report on Wednesday.

McDowell said independent observers had some, but not complete, insights into what the Chinese space plane might look like and do.

“It is indeed similar to X-37,” he said. “Both are in the 5 to 8 tonne mass range, probably about 10 metres long.”

The planes are used for testing new technologies rather than for operational missions, he said. For instance, they could test a new camera for a spy satellite and then bring it back to Earth to see how being in space affected it, he said.

There have been two X-37 planes (X-37A and X-37B) and each has flown several times. “We don’t know how many Chinese space planes there are. It may be just one,” said McDowell.

The Chinese plane’s first flight lasted two days and the second was about nine months. In May, Xinhua reported it had returned to Earth after a 276-day journey in orbit and made “an important breakthrough” for China’s research on reusable and affordable spacecraft technologies.

SpaceX last updated the status of the USSF-52 mission on Tuesday, saying that the launch was delayed until an undisclosed date to perform “additional system checkouts”.

[Business] China former bank manager sentenced to life in prison for corruption

https://www.bbc.co.uk/news/business-67724241?at_medium=RSS&at_campaign=KARANGA

‘Heartless’: selfish woman in China cancels ride-hail car after cabbie drove 40km, waited half-hour but failed to help with bags

https://www.scmp.com/news/people-culture/trending-china/article/3244395/heartless-selfish-woman-china-cancels-ride-hail-car-after-cabbie-drove-40km-waited-half-hour-failed?utm_source=rss_feed

A woman in China cancelled her ride-hailing order because the driver failed to load her luggage despite him driving 40km to pick her up and waiting for half an hour at the pickup spot.

The dispute took place at the entrance to a hotel in Shenzhen, in the southeastern province of Guangdong and involved a young woman with a large suitcase arguing with a ride-hailing driver, Star Video reported.

Frustrated that she cancelled the ride, the driver tried to tell the woman that he had just finished a long commute and then waited for her for 30 minutes.

He added that in that time he had three arguments with a hotel security guard because he was idling at the pickup spot.

The woman insisted on cancelling the ride because the driver had not offered to help with her luggage, which she said should have been included in the premium car service she believed she had ordered.

However, the driver said: “Look carefully! You ordered a regular ride-hailing service, not a premium service. Regardless, I would still have helped you with your luggage if you had asked.”

But the would-be passenger is adamant that the driver should have proactively offered to help.

“Taxi drivers always help with luggage. Your car is so dirty, and my luggage is heavy. Am I supposed to load it myself?” She asked. “Who wouldn’t offer to help a passenger with luggage upon arriving at a hotel entrance?”

Frustrated, the driver tried to reason with the passenger, but she ignored him and played with her phone.

The incident, which happened in 2021, has begun trending again on social media.

As a result of the video, the ride-hailing company both compensated and punished the driver.

In a statement, the company said: “We have reimbursed the driver for commuting without getting paid. However, the incident created widespread social media attention, and the passenger said she was verbally abused.

“We have informed and warned the driver against insulting passengers or spreading personal information, and we will educate him about our platform rules and follow through with punishment.”

The statement intensified online anger, which is largely in support of the driver.

“The passenger is so heartless! People like her should be blacklisted and never allowed to book a ride again,” said one online observer.

“The accuser complained first without acknowledging her unreasonable behaviour. Helping her with her luggage is a favour from the driver, not an obligation. She should have at least asked politely,” said another.

A third person said: “The company’s mishandling of this situation reflected their incompetence. It also showed a lack of moral judgment and social responsibility.”

China looks to AI to navigate massive overhaul of its waterway transport system

https://www.scmp.com/news/china/science/article/3245048/china-looks-ai-navigate-massive-overhaul-its-waterway-transport-system?utm_source=rss_feed

China has pinned its hopes on digital technologies to modernise its waterway transport system, aiming to boost its competitiveness in shipping by improving efficiency and sustainability.

A plan unveiled by the Ministry of Transport on its website earlier this month targets implementation of smart technologies like 5G, big data and artificial intelligence across all major ports and waterways by 2027.

To make China’s ports more intelligent, the ministry said it would urge container terminals to further automate work flows by expanding use of technologies like autonomous vehicles, driverless container trucks and remote-controlled infrastructure.

Active, professional finance helps China claim shipping fleet title from Greece

Authorities also aim to build a digital network for the country’s higher-quality inland waterways as well as for terminals at major coastal ports, such as Shanghai, Dalian and Tianjin.

The ministry said it would encourage the use of smart technologies in maintenance and shipping operations. For example, drones and unstaffed ships could patrol waterways, while a geographic information system and the Internet of Things could help digitalise docks and channels.

Ports and waterways will be expected to employ more new energy resources and devices in their development.

“Compared to roadways and railways, water transport has lower costs, less pollution, less traffic, and better safety,” said Dong Yang, an associate professor at the Hong Kong Polytechnic University, who specialises in shipping and logistics.

“That is why China has worked for years to develop it, and using artificial intelligence to improve decision making is one necessary step forward.”

Game changer or white elephant? China eyes Asean links with shipping canal

Beijing is increasingly turning to advanced technologies like AI for efficiencies in various sectors such as semiconductors where it is under pressure to transition to higher value supply chains amid competition from developing countries like Mexico and India.

China’s use of a vast web of waterways has helped grow its economy over the past few decades, leading to the emergence of powerful regions like the Yangtze River and Pearl River deltas.

Beijing’s push to optimise its waterway transport system could also help cut the country’s reliance on roads, which moved nearly three-quarters of the country’s freight volume last year, compared to waterways which carried 16.9 per cent.

According to the International Transport Forum, road freight transport can generate 100 times the carbon dioxide emissions as waterway transport, given the same cargo and distance travelled.

“The use of smart technologies is a trend in shipping industries now, as it can further increase the efficiency of waterway transport and make it more environmentally friendly,” said Yang, who has researched the evolution of port ecosystems.

China has focused more development on its waterways since the Ministry of Transport published its 14th Five-year Plan for Waterway Transport in 2019, which emphasised digitalisation and sustainability.

National fixed-asset investment (FAI) in waterway transport has grown by an average of 12.5 per cent annually over the past three years, according to the ministry.

China’s launch of biofuel shipping fuel is only the start of industry’s green push

In the first 10 months of this year, combined FAI in China’s road and waterway transport networks stood at 2.57 trillion yuan (US$361.4 billion), up 4.1 per cent year on year.

FAI in roads rose 2.9 per cent year on year, while that in waterways jumped 25.8 per cent, according to official data.

Additional reporting by Ray Jia

China’s economic struggles continue as property, private investment drag in November

https://www.scmp.com/economy/economic-indicators/article/3245131/chinas-economic-struggles-continue-property-private-investment-drag-november?utm_source=rss_feed

A lingering weakness in China’s property sector and private investment continued in November, data released on Friday showed, in a further warning that more government action is needed to shore up investor confidence and reduce financial risks in 2024.

Property investment, a key gauge for market sentiment in the crisis-hit sector, fell by 9.4 per cent in the first 11 months 2023 compared with a year earlier, according to the National Bureau of Statistics (NBS).

The reading declined further from a fall of 9.3 per cent a month earlier, while it matched the forecast from Chinese financial data provider Wind.

Fixed-asset investment expanded by 2.9 in the first 11 months, year on year, unchanged from the growth seen in the January-October period.

The reading was partly lifted by Beijing’s decision to sell 1 trillion yuan (US$139 billion) of sovereign bonds in October, and also front-load the local government bond quota, to stabilise economic momentum.

Private investment, meanwhile, declined by 0.5 per cent in the first 11 months of the year, compared to a year earlier.

Beijing had signalled more pro-growth measures next year at the central economic work conference earlier this week, while China is widely expected to set the same gross domestic product growth target of around 5 per cent for 2024.

However, Beijing still faces lots of challenges, such as low market confidence, weak domestic demand, as well external uncertainties.

Elsewhere, retail sales rose by 10.1 per cent in November, year on year, up from the 7.6 per cent growth in October, but below the 12.6 per cent growth forecast by Wind.

The increase, however, was partially affected by last year’s low base, when retail sales fell by 5.9 per cent, year on year, as a result of China’s coronavirus pandemic control measures.

China’s industrial output rose by 6.6 per cent, compared to 4.6 per cent growth in October.

Finally, the urban surveyed unemployment rate stood at 5 per cent, year on year, unchanged from October.

More to follow …

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US House panel on China vows to hold Beijing, Hong Kong accountable for targeting activists abroad

https://www.scmp.com/news/china/article/3245123/us-house-panel-china-vows-hold-beijing-hong-kong-accountable-targeting-activists-abroad?utm_source=rss_feed

Members of the US House select committee on China pledged in its final hearing this year to do all they could to hold Beijing accountable for any cross-border targeting of activists, hours before the Hong Kong government announced HK$1 million (US$128,000) bounties on five more opposition figures.

“We will do everything in our power to hold the [Chinese Communist Party] accountable when it violates human rights and silences speech here in America,” said Raja Krishnamoorthi of Illinois, the top Democrat on the bipartisan panel.

Mike Gallagher, a Wisconsin Republican and the committee’s chair, said: “We lose nothing by putting human rights at the forefront of our agenda.”

The hearing, titled “CCP transnational repression: the Party’s effort to silence and coerce critics overseas”, sought to feature first-hand testimony from alleged victims and generate ideas for legislative action.

Wednesday’s witnesses included Anna Kwok of the Washington-based Hong Kong Democracy Council; Jinrui Zhang, a Georgetown University law student; and Sophie Richardson, a former China director at the New York-based Human Rights Watch.

Kwok is one of eight opposition figures who was targeted in a bounty list announced in July by the Hong Kong government. Along with the 12 others now on the list, she is accused of violating the city’s national security law.

Testifying before lawmakers, Kwok described receiving online threats before a planned protest at the Asia-Pacific Economic Cooperation summit last month in San Francisco, where US President Joe Biden and Chinese President Xi Jinping met in person.

“I am trapped in this constant fear of being hunted,” she said.

US House panel urges moving China to ‘new tariff column’

Human rights groups have accused the Chinese government of supporting incidents of physical and online harassment that they said occurred during the summit, but there has been no definitive evidence tying Beijing to the acts.

The Chinese embassy in Washington has denied involvement.

The witnesses on Wednesday drew a distinction between “formal” and “informal” or more subtle types of transnational repression, a term typically referring to the targeting of diaspora by governments.

“Formal repression is carried out under the orders of the Chinese state by government workers, while informal repression is carried out organically by CCP supporters,” Zhang testified.

The witnesses also spoke of efforts by the Chinese and Hong Kong governments to target their relatives in their absence.

Zhang said his family in the mainland was harassed and threatened by police on four occasions since June as a result of his activities in the US, which included protesting against China’s zero-Covid controls.

“Once an official pulled out a printed copy of my private text messages with my mother and sister on WeChat to show my father that I harboured the thought of supporting democracy,” he testified.

Zhang claimed that “about a dozen” Chinese students also living in Washington have had their family back home similarly targeted in the past year.

Hong Kong Tiananmen vigil group trio was denied fair trial, senior counsel says

The witnesses urged the committee to take action to grant victims easier access to legal status and improve research on Chinese influence networks operating abroad.

They further called for increased outreach from members of Congress to diaspora communities and better training to help law enforcement recognise and handle cases.

Lawmakers also considered several proposals, including one that would revoke the student visas of those who report on their fellow classmates’ activities to foreign governments.

Wednesday’s hearing was the latest in a flurry of congressional activity this week on Beijing’s role in transnational repression.

On Tuesday, New Jersey Republican Chris Smith, chair of the Congressional Executive Commission on China, held a press conference with representatives from the Hong Kong, Uygur, Tibetan and mainland Chinese communities to discuss protesters’ experiences at Apec.

Who were the young faces of Hong Kong’s democracy movement and where are they now?

Smith pledged to send a letter to the US Justice Department calling for an investigation into the response of law enforcement to protesters’ concerns at the summit. Gallagher and Krishnamoorthi sent a similar letter in November.

On Thursday, both the commission and select committee denounced the new bounties placed on Hong Kong activists, calling for sanctions against the officials involved.

“We urge the administration to sanction Hong Kong officials responsible, especially those in the National Security Department and those who harass family members of the activists in HK,” the commission chairs wrote on X, formerly Twitter.

Senator Jeff Merkley, an Oregon Democrat and co-chair of the commission, earlier this year introduced a bipartisan bill to expand and codify US government responses to transnational repression.

The commission has also backed a bill to close Hong Kong’s economic and trade offices in the US, which activists claim serve as a vehicle for surveillance.

China wants to build ‘first-class’ investment banks – but isn’t telling the industry how

https://www.scmp.com/economy/china-economy/article/3245069/china-wants-build-first-class-investment-banks-isnt-telling-industry-how?utm_source=rss_feed

When China’s leadership vowed to “cultivate first-class investment banks and institutions” at a major conference over a month ago, one would have expected the industry’s response to be one of unbridled excitement.

But rather than making hurried plans for a future where their firms are mentioned in the same breath as the gargantuan stalwarts of the West, most insiders have instead been left scratching their heads.

“What does ‘first-class’ mean? That has never been clearly defined,” said a senior manager at a top Chinese investment bank. “We can only speculate.”

Preventing, resolving China’s financial risks are ‘eternal theme’: Xi Jinping

Intuitively, it should refer to peer institutions that stand alongside household names like Goldman Sachs and Morgan Stanley, but turning that idea into reality is easier said than done.

“The basic structure of the domestic capital market is different from that of foreign countries,” said the manager, who requested not to be named as he was not authorised to speak to the media.

“So if you simply apply foreign standards, it doesn’t really make sense.”

Other questions linger. With tighter oversight from the Communist Party coming on top of already strict regulations, how can Chinese securities firms distinguish themselves as “first-class” with limited space to manoeuvre?

The pledge on investment banks, which came during the twice-a-decade central financial work conference at the end of October, was followed by similar language from the China Securities Regulatory Commission (CSRC) three days later.

In a statement, the regulator vowed to support Chinese securities firms to “become better and stronger”, and “play an important role in serving the real economy and maintaining financial stability” through business innovation, better corporate management and the leveraging of mergers and acquisitions.

The brief message quickly lit up market sentiment, with stock prices soaring for firms that had mergers scheduled – or those that were simply speculated to have deals in the works by overzealous traders.

But professionals working in the sector said mergers would be little more than a short cut to scaling up, rather than a sustainable solution for structural weaknesses.

“If problems were not solved when there were two different companies, when you merge them, you may even magnify the issues,” the manager said.

A month later, the Securities Association of China, a non-profit association operating under the supervision of the CSRC and the Ministry of Civil Affairs, provided more clues on what standards for “first-class” institutions might entail.

According to a report from Securities Times, the organisation will include “supporting high-level technological self-reliance” as a criterion for evaluating Chinese investment banks.

Currently, leading Chinese full-service securities companies still lag behind their international counterparts in several areas, including global franchising, business scale, product sophistication and risk control.

As of the end of September, the total assets of Goldman Sachs and Morgan Stanley were US$1.58 trillion and US$1.17 trillion, respectively, eight and six times bigger than the 1.41 trillion yuan of Citic Securities – China’s largest.

One decisive factor is the short history of China’s capital market. China only entered the investment banking and fund management game in the 1990s, more than two centuries after Wall Street, said Chen Zhiwu, chair professor of finance at the University of Hong Kong (HKU).

The late start has resulted in a weaker position for securities firms in China’s financial sector, which has been long dominated by banks.

Xu Hongcai, deputy director general of the Financial and Economic Affairs Committee of the National People’s Congress (NPC), the country’s top legislature, said the current financial services system – which predominantly relies on bank loans – cannot meet the diversified needs of the present.

Technological innovation, strengthening industrial chains and residents’ wealth management were mentioned as zones of concern, as well as safeguarding common prosperity – the government’s plan to ameliorate inequalities on a societal level.

“There are few leading institutions in China’s securities and insurance industries. In global financial competition, there is a risk of being controlled and suppressed by international financial hegemony,” Xu said in a report to the NPC’s Standing Committee, the highest echelon of the legislature, in October.

“International financing capabilities and levels are not yet high. There are gaps with advanced foreign peers in terms of financial consulting, financing structure arrangements, risk prevention and control, and international market distribution capabilities,” he added.

Despite official acknowledgement of the disparities, Chen from HKU said the essential differences between Chinese investment banks and those of Wall Street may never disappear.

Chinese premier putting risk prevention first as head of new party finance body

“One big difference between Chinese investment banks and Wall Street firms is that the former has a party committee whereas the latter does not,” he said.

“Another factor is that the Chinese economy is socialist in nature, whereas Wall Street is the heart and soul of American capitalism.”

Those differences are unlikely to change any time soon. At the central financial work conference, China’s top leadership pledged to “comprehensively enhance the Communist Party’s leadership in financial work” and deemed this feature an overriding requirement for risk control and prevention.

Rowena Chang, director of the nonbank financial institutions group for Greater China at Fitch Ratings, said top investment banking firms have strong positions in major markets across the globe, while Chinese companies mostly only have a significant presence in mainland China and Hong Kong.

“Scale benefits would allow global investment banks to have higher cost efficiency and larger financial resources to invest in product development and the associated risk control system,” Chang said.

These firms also have more diversified revenue streams and a much higher proportion of revenue generation from asset and wealth management, she added, while Chinese securities companies generate revenue predominantly from brokerage and proprietary trading.

Major US investment banks also lead in product complexity, such as developing a variety of financial derivatives, which prompts them to have more comprehensive risk control systems.

In contrast, Chang said, Chinese securities companies see more limitations due to stricter regulations.

A Hong Kong-based derivatives trader at a Chinese securities firm said he has encountered a few instances of “window guidance” this year, where regulators would instruct securities firms directly to control the scale of some business, or refrain from other activities.

“Sometimes I feel it is difficult to speculate on the intentions of regulators. From the perspective of the people being regulated, the authorities may not really understand what we are doing, but their top priority is making sure that we are under their control,” the trader said on condition of anonymity.

“Regulation is like a hammer, and securities firms are like nails. Regardless of whether it is needed, when you have a hammer you always want to smash nails.”

At foreign investment banks, a primary principle is serving clients, but at Chinese securities firms, the trader said, authorities are the eternal “clients”.

There are also several bodies from which new strictures can flow, compounding confusion in an already complicated regulatory environment.

Along with the CSRC, guidance can also come from the State-owned Assets Supervision and Administration Commission, the state assets watchdog, or the National Development and Reform Commission, the country’s major economic planner.

Even China’s intelligence bureau has weighed in. In November, the Ministry of State Security took aim at short-sellers in a post on its official social media account and pledged to “proactively” protect the country’s financial stability by closely monitoring risks in the sector.

Though strong regulation can prevent risk, it also curbs innovation, especially for Chinese securities firms – almost all of which are state-owned.

Senior managers at those government-backed institutions are more inclined to operate on the principle of “the less you do, the fewer mistakes”, as even the slightest error could be devastating for a potential future in politics.

“The overall systems of risk control and compliance at the Chinese securities firms have not kept up, so they do not have the infrastructure to handle real market fluctuations,” a portfolio manager at a Chinese bank in Hong Kong said.

“The simplest and best way for them to control risks is to give up certain businesses,” the manager added, choosing to remain anonymous due to the sensitivity of the matter.

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Under these circumstances, multiple sources said, it is difficult to cultivate talent that can catch up with those on Wall Street. Without the space to improve firms’ business mix, product sophistication and risk management, the most talented staff will leave for greener pastures.

With the domestic economy still flagging, however, major securities firms in China are all striving for a higher degree of internationalisation.

Currently, these companies generate most of their business revenue from the onshore market, compared to the sizeable international operations of global firms, Fitch Ratings’ Chang said.

For instance, China International Capital Corporation – the Chinese outfit with the most substantial international franchise – claims only about 20 per cent of its business from overseas.

And according to the company’s 2022 financial report, even that minority share predominantly comes from Hong Kong.

The discrepancy also stems from a lack of Chinese multinational corporations that have substantial overseas financing demands compared to those from the United States, multiple sources said.

The time may therefore be ripe, they said, for investment banks to attempt a concurrent internationalisation with Chinese enterprises in general, such as those in the electric vehicle industry.

Perhaps the biggest obstacle to the sort of international expansion required to make China’s firms “world-class” lies in the US dollar-dominated financial market.

“The US dollar is a hard currency, so most of the so-called first-class financial institutions in the world are based in the United States,” said a fund manager with 20 years of experience.

Other issues may be more domestic in nature. Wu Xiaoqiu, former vice-president of Renmin University of China and dean of the China Capital Market Research Institute, said a diversified, open and international financial system is indispensable for China’s goal of becoming a financial powerhouse.

“It is impossible to build a financial powerhouse with a closed or a semi-closed financial system,” Wu said during the annual China Macroeconomic Forum last month.

“The big problem we face now is how to make the yuan freely tradeable, how to achieve internationalisation and how to strike a balance with the security of foreign exchange reserve assets.”