• Boeing secures first Dreamliner delivery to China since 2019
• Hong Kong’s problems trace back to China. And also America | Finance & economics
• Philippines’ US ties risk more than links with China, expert warns
• China’s manufacturers, exporters urged to speed up low-carbon transition as EU wields ‘trade weapon’ with import tax
• China brings in new export controls on hi-tech products amid ongoing rivalry with US
• US-China military relations reopen for first time in over a year as top American officer talks with counterpart
• Number of Hong Kong businesses with mainland China or overseas parents back to pre-coronavirus levels at more than 9,000, figures show
• Chinese and Russian military officials vow to boost ‘strategic coordination’
• Chinese police highlight crime crackdown in strategically important finance, tech sectors
• Chinese University of Hong Kong names top surgeon as new head of medical school
• China and Russia pledge to defend each other’s core interests, ‘jointly face challenges’ as Moscow faces new sanctions
• China vows to boost crop yields, seed innovation to ensure food security as Xi Jinping calls for investment in ‘lifeblood’ arable land
• China boy hands in bag containing US$22,000 to police despite dire family situation with sick father in hospital, believing owner may need money
• Chinese FM Wang Yi warns Philippines to ‘act with caution’ in South China Sea maritime dispute
• China men drilled small holes into 76 bottles of pricey Moutai, siphoning off fiery Chinese spirit before replacing it with cheap substitute detained
• China’s secret space plane emits strong signal to the ground when passing North America: satellite tracker
• How Chinese scientists are extracting uranium from seawater faster than ever
• Mainland China suspends tariff cuts on 12 Taiwanese imports from January in response to ‘discriminatory measures’
• China emerged from ‘zero-COVID’ in 2023 to confront new challenges in a changed world
• How to cure China’s declining consumer prices divides opinion as deflation signs deepen
• What explains the changes to Hong Kong leader’s annual duty visit to Beijing? They signal Chinese President Xi Jinping’s bigger, more direct role in city affairs, observers say
• China teacher orders girls caught eating in class slap themselves in face then asks boys to help with beating, triggering official probe
• US lawmakers urge Antony Blinken to slap sanctions on Hong Kong, Chinese officials for activists’ arrest warrants
• China reportedly suspends US$6.5 billion currency swap agreement with Argentina
• Israel-Gaza war: the 2 things Israel wants China to do to help restore peace in the Middle East
• US Invests in Africa to Counter Chinese Influence

Boeing secures first Dreamliner delivery to China since 2019

https://www.scmp.com/news/china/article/3245940/boeing-secures-first-dreamliner-delivery-china-2019?utm_source=rss_feed

China has signed off on the first direct delivery of a Boeing 787 jet in four years, an indication strained US-China trade relations may be easing and a potential precursor to the more significant resumption of 737 Max deliveries.

Juneyao Airlines, one of China’s largest privately owned carriers, took delivery of its newest 787 Dreamliner on Thursday, in a boost for the US plane manufacturer. The jet took off for Shanghai from Boeing’s factory in Everett, Washington, at about 11:25 am local time, according to FlightRadar24 flight data.

The delivery marks a breakthrough for Boeing, which has been largely shut out of China’s aviation market this decade. The US manufacturer has not handed over any of its 737 Max or Dreamliners directly from its factories to China since 2019. The last new 787 to leave for China was via a US lessor in 2021.

Sky’s the limit: China to develop high-altitude version of C919 passenger jet

A spokesman for Juneyao declined to comment. Boeing confirmed the Juneyao Air delivery in an emailed statement.

Boeing pared an early gain of as much as 2.8 per cent to trade up 0.6 per cent as of 3:19 pm in New York. The stock has soared 47 per cent since the end of October on signs the industrial titan is starting to speed up deliveries of its two main cash cow planes.

The development comes as Boeing and all Chinese airlines wait for Beijing to allow 737 Max deliveries for the first time in almost five years. That model of jet was grounded globally in 2019 after two fatal crashes. Jefferies LLC has said it expects 737 Max deliveries to Asia’s biggest economy to take place after the 787 delivery.

“There are clear regulatory and political hurdles to overcome but the resumption of deliveries appears to be nearing,” Jefferies analyst Sheila Kahyaoglu wrote in a December 19 note. Another 787 destined for China Eastern Airlines is also being prepared, evidence that the Juneyao delivery is not a one-off event.

The jet, registered B-20EQ, is expected to arrive in Juneyao’s home base of Shanghai on Friday afternoon.

Juneyao’s delivery would help the US plane manufacturer edge closer to its annual 787 delivery target of 70 to 80 jets. By the end of November, Boeing delivered 62 Dreamliner aircraft, its data shows.

The resumption of 787 deliveries to China will also help Boeing winnow its inventory of already built Dreamliners, a move that would bolster cash for the plane maker. About 12 of the 75 undelivered widebodies in Boeing storage lots are designated for Chinese carriers, according to Jefferies.

Hong Kong’s problems trace back to China. And also America | Finance & economics

https://www.economist.com/finance-and-economics/2023/12/20/hong-kongs-problems-trace-back-to-china-and-also-america

Sevva, a swanky bar and restaurant with electrifying views, has been serving bankers and sightseers for more than 15 years. From its terrace, you can peer over a cocktail and through the office windows of HSBC across the road. The restaurant’s cuisine is meant to be “fresh, simple and honest”. Yet it is not cheap. An oversized dosa, a humble South Indian breakfast food, will set you back HK$380 (almost $50). Some patrons eat them with a knife and fork.

In May, sadly, the restaurant will close. That has not helped the morale of the city’s beleaguered financial industry. Hong Kong’s main stockmarket index has plunged by more than a quarter since late January. Its index for smaller, “growth” enterprises is well below the trough it reached in October 2022, before China began lifting the quarantine requirements that starved Hong Kong of visitors.

Since the protests were quashed, the authorities have worked hard to bring Hong Kong and the mainland closer together. Whether or not this message has taken root among residents, it seems to have prevailed among foreign investors, some of whom now see little distinction between Hong Kong and the rest of China.

But the truth is that Hong Kong’s financial industry and property market remained strong after the national-security law was introduced in June 2020. IPOs, for example, brought in almost HK$329bn in 2021, 15% more than in 2018. Property prices did not peak until the end of 2021.

China’s crackdown on Hong Kong has probably done less immediate harm to the territory’s financial markets than another crackdown: Beijing’s regulatory campaign against mainland property developers and internet firms, many of which are listed in Hong Kong. Strict financial limits imposed on developers caused a wave of defaults on bonds issued in Hong Kong. Investors have learnt that unsecured debt issued offshore by a mainland company’s subsidiary or offshoot sinks to the bottom of the pecking order when things go wrong.

As well as diminished autonomy from the mainland, Hong Kong also lacks autonomy from America’s Federal Reserve. To maintain its currency peg to the dollar, the city has been forced to raise interest rates sharply, despite low inflation and the fragility of its recovery. High interest rates have hurt the property market and the broader economy. The high cost of capital may have encouraged firms to run down their inventories, contributing to the sharp slowdown in growth in the second quarter, argues Goldman Sachs, a bank.

The currency peg has also meant that Hong Kong has lost competitiveness against some of its neighbours. Its currency has risen by 6% against the yuan since the end of January, even as prices in China have been falling. Weak exports and strong imports are likely to subtract more than two percentage points from Hong Kong’s growth this year. Hong Kong is not just another Chinese city. If it were, it would have a more competitive currency.

Days of being wild

When China dismantled its quarantine regime a year ago, Hong Kong’s boutiques, hotels and restaurants expected an influx of mainlanders. In the first ten months of the year, 21m showed up. Yet that was only 52% of the number that arrived in the same period of 2018. These visitors also seem to be spending less. Indeed, many of them are opening bank accounts and buying life-insurance policies to take advantage of the city’s higher interest rates.

Instead of mainlanders flocking to Hong Kong, the city’s residents are travelling in the opposite direction. Their departures (mostly to other parts of China) now outnumber mainland arrivals by almost three-to-one, points out Citigroup, another bank. After a recent visit to Hong Kong, John Greenwood, one of the architects of the territory’s dollar peg, was reminded of “episodes from the distant past” when British consumers crossed the Channel to France to buy booze and food.

But all this gloom has an upside. If the Fed does cut interest rates in 2024, as futures markets expect, Hong Kong’s domestic economy should respond vigorously. As financial conditions ease and Hong Kong’s currency weakens, the deals and the visitors might return. Although Hong Kong is losing one of its most iconic restaurants, the city’s appeal will endure. It will remain a place where people from around the world can enjoy a taste of Asia without giving up familiar utensils. ■

For more expert analysis of the biggest stories in economics, finance and markets, sign up to Money Talks, our weekly subscriber-only newsletter.

Philippines’ US ties risk more than links with China, expert warns

https://www.scmp.com/news/china/diplomacy/article/3245865/philippines-us-ties-risk-more-links-china-expert-warns?utm_source=rss_feed

The Philippines may have underestimated China’s ability to hit back in the South China Sea, a Chinese maritime expert warned on Wednesday.

Addressing a closed-door meeting on the China-Philippines relationship, Wu Shicun, chairman of the Huayang Centre for Maritime Cooperation and Ocean Governance, also cautioned that Manila’s “unprecedented” security cooperation with the US would risk not just ties with China but also the Philippines’ own interests.

“An important prerequisite for stable China-Philippine relations in the future is that the US-Philippine alliance and security cooperation must not target China,” Wu said, according to a transcript published by the Hainan-based think tank.

“But if their cooperation in, for example, the use of military bases, joint exercises, information gathering and logistical supplies infringe the core and important interests of China such as Taiwan, the South China Sea and …[China’s] national security, then not only will China-Philippines relations bear the brunt, and the peace and stability of the South China Sea become untenable, the Philippines’ own interests will also be undermined.”

Ties between Beijing and Manila have been strained over repeated face-offs between Chinese and Philippine ships in the South China Sea, including collisions that have raised fears of the waterway becoming a flashpoint.

Beijing and Manila have accused each other of provocation.

In an interview after arriving in Japan last Friday, Philippine President Ferdinand Marcos Jnr, who has strengthened Manila’s alliance with Washington, said his country needed a “paradigm shift” in its approach to the South China Sea because diplomatic efforts with Beijing were heading “in a poor direction”.

Marcos said the Philippines would work with partners in the Indo-Pacific region to come up with a joint position on their responsibilities in the waters.

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

During the meeting on Wednesday, Wu, the former president of the government-backed National Institute for South China Sea Studies, said US support was partly to blame for recent “risky behaviours” by the Philippines.

Despite blockades by Beijing, Manila has sent regular resupply missions to shore up a World War II-era navy ship that was deliberately grounded in 1999 as an outpost at the Second Thomas Shoal.

“[The US support was also] linked to the underestimation made by the Philippines’ strategic community and policymakers of China’s likely resolve and ability to counterbalance it,” he added.

Beijing has long labelled the US as an “external force” escalating tensions in the strategically important waterway that connects Northeast and Southeast Asia, and the Pacific and the Indian Ocean.

It was frustrated when Manila announced in April that it would allow US troops access to four more military bases, including one about 400km (250 miles) from Taiwan and another one that is only 200km from a Chinese base on Mischief Reef in the Spratly Islands.

In another move that may upset Beijing, Japan, another US treaty ally, announced on Wednesday that it had formally handed over an air surveillance radar system to the Philippines.

The system can detect approaching fighter jets and missiles and help bolster the Southeast Asian country’s defences, according to Philippine Defence Secretary Gilberto Teodoro.

Wu said that a stronger US-Philippine alliance would bring more uncertainties to Manila’s ties with Beijing.

This is especially so given the US has steadily increased its military presence around China, including sailing of naval vessels and surveillance planes in the South China Sea and through the Taiwan Strait, according to Wu.

Marcos has said the US cannot use its military bases for offensives against China but Wu warned that such situations would be “out of the Philippines’ control”.

“A likely consequence is that the Philippines not only becomes a casualty of the US-China military game in the South China Sea, but also becomes militarily involved in the US-China conflict in the Taiwan Strait,” Wu said.

The two sides should find a way out of the “South China Sea dilemma” to avoid spillover damage on bilateral cooperation, Wu said.

And the only way to do that, according to Wu, is to set aside a ruling from a tribunal in The Hague that dismissed much of Beijing’s claim to the disputed waters.

“The only way is to set aside the South China Sea tribunal ruling and not take it as an additional condition when dealing with bilateral relations and the South China Sea disputes,” he said.

“Otherwise … the South China Sea dilemma will never be resolved and the comprehensive cooperation in trade, culture … tourism and investment would inevitably be interrupted.”

Beijing flexes muscles in South China Sea as Manila puts it on the defensive

He also said the two sides should resume the hotline between their respective coastguards, which started in January but was suspended in August after Philippine Coast Guard spokesman Jay Tarriela complained that the line “never really gave us a positive chance to talk”.

Wu said the hotlines as well as the joint committee between the two coastguards since 2017 had “played some role” in managing disputes at the sea, including in the waters around the Scarborough Shoal, the Second Thomas Shoal and Sand Cay, a China-controlled high-tide sandbar located about two nautical miles from the Philippines’ Pagasa Island.

“There is no reason for us to set aside these effective mechanisms … and allow conflicts to widen, conflicts to escalate and crises to spiral out of control, and watch relations between our two countries reach the point of no return,” Wu said.

China’s manufacturers, exporters urged to speed up low-carbon transition as EU wields ‘trade weapon’ with import tax

https://www.scmp.com/economy/global-economy/article/3245884/chinas-manufacturers-exporters-urged-speed-low-carbon-transition-eu-wields-trade-weapon-import-tax?utm_source=rss_feed

Chinese manufacturers and exporters should ramp up refining their carbon emission monitoring systems and expedite low-carbon transformations to avoid being replaced in the European Union under the bloc’s new tax, urged officials and industry insiders.

“The currently high-quality and low-price Chinese goods, coupled with the carbon tax that importers have to pay, will not be cheap any more and may lose a certain price competitiveness,” said Gai Lin, secretary general of EU-China Friendship Association.

The Carbon Border Adjustment Mechanism is designed to prevent “carbon leakage” stemming from carbon-intensive imports when production moves outside the bloc to take advantage of less stringent climate policies.

Under the new mechanism, importers would have to pay the difference between the carbon emission price in the country of origin and that of domestic production in the EU.

It initially applies to six industries: cement, iron and steel, aluminium, fertilisers, electricity and hydrogen.

The rules have been implemented since October, and during the transition period until the end of 2025, importers will only need to provide information on the carbon intensity of their products.

“European importers are likely to switch import partners if their suppliers are unable to provide data that meets their needs,” Gai said during an online seminar organised by the China Council for the Promotion of International Trade on Tuesday.

“Due to the additional costs incurred by the declaration process, the price of [Chinese] exports will inevitably increase.”

Chinese officials have expressed strong opposition to the rule, claiming it is a form of tariff barrier that does not comply with global trading rules.

The EU was China’s second-largest export destination in the first 11 months of the year, after the Association of Southeast Asian Nations, according to Chinese customs.

China’s exposure to the mechanism is mostly concentrated in the steel industry. From January to November, China sent US$13.7 billion worth of iron and steel products to the EU, accounting for 3 per cent of its total exports to the bloc.

Though the short term impact on China’s manufacturing sector is limited due to the small exposure, the coverage may further expand, while more countries – such as the United States, Japan and Canada – may follow suit and adopt a similar approach, Gai added.

“It is possible that [climate policies] may eventually become a trade weapon towards China,” he said.

To keep normal trade flow in the future, Chinese firms should study the rules carefully and establish reliable carbon calculation methodologies for their products to ensure compliance, officials said.

Beijing is accelerating the low-carbon transformation of China’s energy system, and is optimising its own carbon tax and market pricing mechanism to achieve its carbon emission target and cope with the impact of the new rules, said Cai Chenfeng, director of the Commercial Legal Service Centre at the China Council for the Promotion of International Trade.

“Chinese companies also need to set corporate carbon emission goals, and understand the carbon tax-related policies from the EU as soon as possible, to avoid being taxed for high carbon emissions when exporting products,” Cai added during the seminar.

“It is imperative to respond to changes in global competition with a low-carbon development approach.”

China brings in new export controls on hi-tech products amid ongoing rivalry with US

https://www.scmp.com/news/china/diplomacy/article/3245924/china-brings-new-export-controls-hi-tech-products-amid-ongoing-rivalry-us?utm_source=rss_feed

China has slapped fresh export controls on key technologies, including laser radars, drones and biotechnology products.

It comes amid an intensifying technological rivalry with the United States and some of its allies that has led to tighter export controls on certain products – particularly those related to advanced artificial intelligence chips – “because they could be used for military uses and modernisation”.

An updated catalogue of technologies facing export bans and restrictions was issued on Thursday jointly by the Chinese Ministry of Science and Technology and Ministry of Commerce. It takes effect immediately.

In July Beijing imposed export restrictions on two critical elements – gallium and germanium and several of their compounds – in retaliation for earlier measures targeting the Chinese semiconductor industry.

The latest export controls are intended to “safeguard national security, the public interest or public morality”, the ministries said.

Other reasons cited included “protecting the health or safety of humans, animals and plants and the environment”, as well as complying with domestic laws or international treaties and agreements.

China exports of gallium and germanium surged before controls kicked in

Technology for the extraction, processing, refining and use of rare earth metals – one of China’s essential tools in the tech war – also remain subject to export controls.

China accounts for over 70 per cent the world’s output of these metals, which are key to making some electronic items and military equipment, and has a monopoly on some processing capacities.

The ministries in their notice specifically mentioned that “dual-use technologies [which can be used] for both military and civilian purposes shall be included in the export control management”.

New technological categories that did not feature in a list issued in 2020 are also included in the latest controls. These include laser radars, crop hybridisation, human cell cloning and gene editing, as well as bulk cargo handling.

The notice specified that laser radars which have a certain power, pulse width, detection range, accuracy or resolution must not be freely exported. It also retains restrictions on technologies used to make deep-ultraviolet lasers, as well as some key single crystals.

The list also expands several existing categories, including other drone technologies.

The new controls also include technology used to make optical/infrared sensors, synthetic aperture radars and laser radars, and other critical items used in unmanned aerial vehicles.

US opposes China’s export controls, saying they justify supply chain moves

In addition, UAV flight control systems as well as algorithms and software for autonomous navigation, path planning and obstacle avoidance also face restrictions.

Earlier this year China imposed temporary export controls on drones that could be used for military purposes against the backdrop of intensified drone attacks in the Russia-Ukraine War.

Notably the finalised list has removed “manufcaturing technology for photovoltaic silicon wafer”, which was included in a draft proposal issued in January. China dominates the global solar wafer industry with about 97 per cent of production.

US-China military relations reopen for first time in over a year as top American officer talks with counterpart

https://www.scmp.com/news/world/united-states-canada/article/3245922/top-us-military-officer-speaks-chinese-counterpart-us-aims-warm-relations-beijing?utm_source=rss_feed

General CQ Brown, chairman of the Joint Chiefs of Staff, spoke with his Chinese counterpart on Thursday, in the first of what officials said will be renewed talks between the two nation’s senior military leaders, as the Biden administration works to thaw relations with Beijing.

The video call between Brown and General Liu Zhenli is the first senior military communication between the US and China since August 2022, when Beijing suspended all such contacts after former House Speaker Nancy Pelosi’s visit to Taiwan.

It comes on the heels of similar conversations between top US and Chinese diplomats, all triggered by the meeting last month between US President Joe Biden and China’s President Xi Jinping.

Biden’s meeting with Xi, on the sidelines of the Asia-Pacific Economic Cooperation summit in San Francisco, was aimed in part at restoring military talks amid escalating concerns about frequent unsafe or unprofessional incidents between the two nations’ ships and aircraft in the Pacific region.

The US has consistently viewed military communications with China as critical to avoiding any missteps between their armed forces and to maintaining a peaceful Indo-Pacific region.

Brown’s call is the first Cabinet-level communication with China since Secretary of State Antony Blinken spoke on December 6 with Chinese Foreign Minister Wang Yi.

While few details about Brown’s call were released, a senior US defence official and a senior military official said it was an important first step.

These are the kinds of discussions that the US needs to have with China, they said, to avoid misunderstandings or miscalculations as the two militaries interact.

Pentagon official says Silicon Valley-US military ties key to beating China

The two officials spoke to reporters on condition of anonymity to provide information before the call.

They said the US is talking with China at various levels to work out a series of calls and meetings in the coming weeks and months.

They include plans to hold the bilateral Defense Policy Coordination Talks early next year and the possible resumption of the China-US Military Maritime Consultative Agreement talks in the spring.

In August 2022, Beijing suspended all military contact with the US when Pelosi became the highest-ranking American lawmaker to visit Taiwan since 1997’s visit by then-Speaker Newt Gingrich.

Her visit sparked a surge in military manoeuvres by China. Beijing dispatched warships and aircraft across the median line in the Taiwan Strait, claiming the de facto boundary did not exist, fired missiles over Taiwan itself, and challenged established norms by firing missiles into Japan’s exclusive economic zone.

There also has been an increase in what the Pentagon calls risky Chinese aircraft and warship incidents.

The Defense Department in October released video footage of some of the more than 180 intercepts of US warplanes by Chinese aircraft that have occurred in the past two years – more than the total number over the previous decade.

China, US agree on AI risks, but can they see past military tech rivalry?

In one of the more recent incidents, a Chinese pilot flew within 3 metres (10 feet) of a US Air Force B-52, which was conducting routine operations over the South China Sea in international airspace.

While officials touted the Brown-Liu call as an important initial move, the Pentagon has continued to express concerns about China’s aggressive military interactions in the Indo-Pacific and has worked to build alliances with other nations in the region.

Earlier this month, Defence Secretary Lloyd Austin met with defence chiefs from Australia and the United Kingdom to forge a new agreement to increase technology cooperation and information sharing, as part of a broader effort to counter China’s rapidly growing influence in the Indo-Pacific.

The new technology agreement is the next step in widening military cooperation with Australia that includes plans to help equip Sydney with a fleet of eight nuclear-powered submarines.

And the defence leaders pointed to efforts by China to restrict freedom of navigation in the Indo-Pacific as a reason to bolster their cooperation.

China will cooperate with US on military talks, AI, but warns of Taiwan ‘abyss’

Also, earlier this week, Admiral John Aquilino, head of US Indo-Pacific Command, expressed concerns about the increased joint military actions by China and Russia in the region.

Speaking in Tokyo, he said it is far beyond a “marriage of convenience” between Beijing and Moscow, and he urged China to stop escalating maritime confrontations with its neighbours.

China’s defence ministry, meanwhile, has criticised the US for interfering in both Taiwan and the South China Sea, charging that American arms sales to Taiwan are making the situation more dangerous.

Number of Hong Kong businesses with mainland China or overseas parents back to pre-coronavirus levels at more than 9,000, figures show

https://www.scmp.com/news/hong-kong/hong-kong-economy/article/3245923/number-hong-kong-businesses-mainland-china-or-overseas-parents-back-pre-coronavirus-levels-more-9000?utm_source=rss_feed

The number of Hong Kong businesses in with parent companies overseas or in mainland China has returned to pre-pandemic levels with more than 9,000 firms and a total of 468,000 staff, the government has said.

There were 9,039 companies with head offices located outside the city by June 1, the Commerce and Economic Development Bureau said on Thursday.

The figure is a 0.6 per cent increase compared with the previous year, when 8,978 such firms were recorded.

The latest count is in line with the pre-coronavirus level of 9,040 companies logged in 2019.

The mainland had the largest number of companies operating in Hong Kong in 2023, with 2,177, followed by Japan, the United States, Britain and Singapore.

The city also saw 4,257 start-ups this year, a record high, with 272 more registered than in 2022, a 34 per cent surge on the number recorded in 2019.

The start-ups included fintech, e-commerce, supply chain management and logistics technology businesses and created 16,453 jobs.

30 firms to invest HK$30 billion in Hong Kong, ‘help spur city’s rise’ as I&T hub

There were 3.72 million people employed in the city by September 30.

The government said the figures underlined that enterprises had confidence in Hong Kong and wanted to use its unique advantages of strong support from the mainland and close connections to the rest of the world under the “one country, two systems” principle.

“The current term government attaches great importance to attracting enterprises and investment, a spokesman for the bureau said. “The survey results showed that the investment promotion work of the Government is effective.”

He added officials would continue to work to attract overseas enterprises to invest in the mainland and help mainland enterprises to tap into overseas markets, which would also create growth in Hong Kong’s trade and economic development.

‘100 foreign companies in talks with Hong Kong about investment plans’

The government said the Office for Attracting Strategic Enterprises (OASES) set up last December had led to the establishment of more than 30 strategic enterprises in Hong Kong, including the city’s first research and development centre set up by a top 10 global pharmaceutical company.

The authorities earlier expected strategic enterprises to invest a total of more than HK$30 billion (US$3.8 billion) in Hong Kong and create at least 10,000 jobs in research and development or senior management positions.

The world’s largest manufacturer of electric vehicle batteries, mainland-based Contemporary Amperex Technology, earlier this month signed a memorandum of understanding to set up a research and development centre in the Hong Kong Science Park.

---

Chinese and Russian military officials vow to boost ‘strategic coordination’

https://www.scmp.com/news/china/military/article/3245888/chinese-and-russian-military-officials-vow-boost-strategic-coordination?utm_source=rss_feed

Chinese and Russian military officials vowed to strengthen strategic coordination during talks in Beijing on Wednesday, China’s defence ministry said.

In a statement, the ministry said the officials had an “in-depth exchange of views on the international and regional security situation and relations between the two militaries”.

“[The two sides] will jointly implement the important consensus reached by President Xi Jinping and President [Vladimir] Putin, further enhance the level of strategic coordination between the two militaries, and make new contributions to promoting regional and world peace and stability,” the statement said.

The Chinese defence ministry did not give details of the officials who took part in the meeting.

It was the 22nd round of “strategic consultations” between the Chinese and Russian militaries. No statement was released after the last round of talks in 2019.

The previous round was held in Beijing in 2018 and was co-hosted by Major General Shao Yuanming, deputy chief of the Chinese Central Military Commission’s Joint Staff Department, and Colonel General Sergei Rudskoy, chief of the Main Operational Directorate of the Russian Armed Forces’ General Staff. They were also pictured at the 2019 meeting.

The latest military talks were held as Beijing and Moscow have been deepening their ties.

Also on Wednesday, China’s president met Russian Prime Minister Mikhail Mishustin in Beijing. Xi said that maintaining and developing good China-Russia relations was a “strategic choice” made by both sides based on their fundamental interests.

Chinese foreign ministry spokesman Wang Wenbin described the neighbouring countries as comprehensive strategic partners in the new era. He said high-level communications were “necessary for the healthy and stable development of China-Russia relations”.

“Next year, China and Russia will celebrate the 75th anniversary of the establishment of diplomatic relations and launch the China-Russia Cultural Year,” Wang said. “We look forward to deepening bilateral cooperation through dialogue and communication on the basis of the principles of mutual respect, mutual benefit and win-win results.”

Last week, Chinese and Russian warplanes including strategic bombers and fighter jets conducted a joint air patrol over the Sea of Japan, or East Sea. South Korea and Japan said they had scrambled fighter jets in response.

Russia’s defence ministry said the patrol was part of a military cooperation plan between the two countries. It said the two sides were operating in accordance with international law, the patrol was not directed at third countries, and there had been “no violations of the airspace of other countries”.

Chinese police highlight crime crackdown in strategically important finance, tech sectors

https://www.scmp.com/news/china/politics/article/3245908/chinese-police-highlight-crime-crackdown-strategically-important-finance-tech-sectors?utm_source=rss_feed

Police in Shanghai have said a string of arrests in connection with the theft of hi-tech trade secrets was the result of a stepped up effort to protect the strategically important sector, as well as a renewed crackdown on financial crimes.

Fourteen suspects were detained and seven servers confiscated after police were tipped off that former employees of an unnamed chip supplier had stolen the firm’s trade secrets, which might lead to huge financial loss, the police said at a press conference on Thursday.

The company’s former managers established their own start-up company after quitting, and lured other colleagues at the company who worked in semiconductor research and development to join their operation with promises of stock shares and high pay, said Cai Ye, an officer who had worked on the case.

ASML employee accused of data theft went to Huawei: report

The managers urged staff to take screenshots and copy sensitive information, Cai said, which was then used to develop their own chip. Investigators discovered that the newly developed chip was 90 per cent similar to the original chip.

Cai cautioned that Chinese tech companies need to improve internal security and report any theft of trade secrets, classified information or other corporate crimes to the police.

The decision to publicise the case was made as law enforcement agencies around the country tried to draw attention to their battles to improve China’s business environment, which they said will help improve China’s sluggish economic growth.

In Shanghai this year, authorities have focused particular attention on financial crimes, fighting against increasingly complex criminal tactics, cracking over 4,000 cases and recovering more than 9.12 billion yuan (US$1.28 billion) in stolen proceeds, according to police.

The stepped-up enforcement came as more attention has been focused on Shanghai’s role in China’s economy and technical innovation. During a recent inspection tour to Shanghai by Chinese President Xi Jinping, he stressed the city’s importance as an innovation leader, adding that it needed to create a fair, competitive market for companies and attract talent.

China will ‘vigorously support’ semiconductor industry, IT minister says

Zhang Yulan, deputy director with the Economic Investigation Corps at the Shanghai Municipal Public Security Bureau, said the police have focused on many kinds of illegal financial activities, including tax fraud, insider trading, credit fraud, loan sharking and money laundering. They have cooperated with authorities in 27 countries and regions, including Morocco and Ethiopia, to extradite suspects.

Zhang said the police crackdown on offences like theft of commercial and trade secrets in hi-tech sectors, as well as copyright infringement investigations in fields like auto parts and children’s toy manufacturing, and publishing would improve Shanghai’s business environment by protecting the rights of such entities.

“The Economic Investigation Corps will improve our ability to prevent financial crimes, do our best to safeguard the national economic security, protect a first-class business environment and the people’s fundamental interests,” Zhang said.

As the internet and social media have developed in recent years, police have had to tackle increasingly sophisticated financial crimes. The police said many culprits have used short videos and online advertising to lure investors into schemes that are linked to popular themes like “artificial intelligence”.

Chinese University of Hong Kong names top surgeon as new head of medical school

https://www.scmp.com/news/hong-kong/education/article/3245876/chinese-university-hong-kong-names-veteran-surgeon-new-head-medical-school?utm_source=rss_feed

A top surgeon has been named the new head of the Chinese University of Hong Kong’s medical school, and is set to take up the position starting February next year.

The university on Thursday said Professor Philip Chiu Wai-yan, currently an associate dean at the faculty, would succeed Professor Francis Chan Ka-leung, who had served in the position for more than 10 years.

An internationally renowned scholar on upper gastrointestinal surgery, Chiu joined the faculty in 2005. He is the chief of division of upper gastrointestinal and metabolic surgery at the school.

He is also the director of the Multi-scale Medical Robotics Center supported by the government’s InnoHK initiative, and also of the Endoscopy Centre at the university’s Institute of Digestive Disease.

Chiu thanked the university’s search committee and the faculty for their support, and praised Chan’s leadership over the past decade.

He added that he would build on the achievements of his predecessors and further strengthen the faculty’s position as a leading medical school in the region.

“In the coming months, I will be meeting with different stakeholders, actively listening to their expectations and suggestions for the faculty,” he said.

Hong Kong private hospital to serve public in return for loan repayment deferment

“In the years to come, I will work closely with students, staff, alumni and different sectors of the community to contribute to the health of humankind.”

The university established the search committee in October 2022 and launched an open global search in January the following year.

It said the committee unanimously recommended Chiu as the most suitable candidate, after considering applications and nominations from around the world.

He was then recommended for the role by the university’s vice-chancellor Rocky Tuan Sung-chi.

Tuan said he was confident that Chiu would make the faculty a stronger global leader when it came to clinical excellence and education.

Chinese University head out of sight, but at the centre of storm over council reforms

Chiu performed the first endoscopic submucosal dissection (ESD) for the treatment of early gastrointestinal cancers in Hong Kong in 2004, and the first peroral endoscopic myotomy, a procedure to treat esophageal motility disorders, in the city in 2010, according to the university.

He also pioneered the world’s first robotic gastric ESD in 2011, followed by the world’s first robotic colorectal ESD in 2020.

Professor John Chai Yat-chiu, governing council chairman at the university, said Chiu was an ideal leader who had a profound understanding of the faculty and the local healthcare system.

“Together with his proven leadership in innovation and technology, I trust [the faculty of medicine] to contribute even more impactfully to opportunities presented by the many Hong Kong innovation and technology initiatives and to scale newer heights in medical education and research for the benefits of mankind,” he said.

China and Russia pledge to defend each other’s core interests, ‘jointly face challenges’ as Moscow faces new sanctions

https://www.scmp.com/news/china/diplomacy/article/3245891/china-and-russia-pledge-defend-each-others-core-interests-jointly-face-challenges-moscow-faces-new?utm_source=rss_feed

China and Russia pledged to defend each other’s interests and “jointly face challenges” amid geopolitical changes, according to a joint communique issued following meetings between their heads of government.

Beijing and Moscow reaffirmed that their bilateral ties would not be affected by any third-party interference and pledged to strengthen coordination within multilateral frameworks after an annual meeting led by Chinese Premier Li Qiang and his Russian counterpart Mikhail Mishustin concluded in Beijing on Wednesday.

“Consolidating and deepening China-Russia relations in the new era is a strategic choice made by both sides based on their respective national conditions. It is in line with the fundamental interests of the two countries and their peoples … It is not aimed at a third party, and is not subject to or swayed by external influence,” the joint communique said.

Deeper China-Russia relations a ‘strategic choice’ by both sides: Xi Jinping

The communique stated that Russia reaffirmed its support for “one China” and “opposed any form of independence of Taiwan”, while China said it supported Russia’s territorial integrity and opposed interference in Russia’s internal affairs by external forces.

The communique said China and Russia would continue to jointly face challenges and “firmly support each other in safeguarding their respective core interests”.

Mishustin was in China for a two-day visit in a bid to secure economic deals with the country as Russia has become internationally isolated since its invasion of Ukraine, where war has raged on for almost two years with no end in sight.

He also met Chinese President Xi Jinping on Wednesday, who said he would advance political and economic ties with Moscow.

None of the Chinese or Russian official statements following the meetings with Xi and Li mentioned the conflict in Ukraine. But in the joint communique, the two nations said they opposed unilateral sanctions that had not been approved by the United Nations Security Council.

“[Sanctions] have a huge negative impact on the world economy and finance,” the communique said.

Mishustin’s visit came as the European Union slapped a new round of sanctions on Moscow. Chinese companies have repeatedly been accused of circumventing sanctions imposed by the EU against Russia.

In the joint communique, the countries agreed to “closely coordinate” with each other under multilateral frameworks including Brics, the Shanghai Cooperation Organisation (SCO), the Group of 20, the Asia-Pacific Economic Cooperation forum, the East Asia Summit and the Greater Tumen Initiative.

They also jointly acknowledged Iran’s admission as a full member of the SCO this year, saying it would help expand cooperation under the regional political, security and economic organisation.

Iran was also among six new members to join the Brics bloc as part of a historic expansion of the group, which is increasingly seen as a platform for China and Russia to rival the Group of 7.

Beijing and Moscow also agreed to expand people-to-people exchanges, including in academics, healthcare and sports. They will also explore mechanisms to allow long-term visas with multiple entries.

Speaking in Beijing on Monday, Russian deputy prime minister Dmitry Chernyshenko noted that China is Russia’s biggest source of tourists, adding that he expected tourism between the two countries to exceed 1 million trips this year.

China vows to boost crop yields, seed innovation to ensure food security as Xi Jinping calls for investment in ‘lifeblood’ arable land

https://www.scmp.com/economy/china-economy/article/3245889/china-vows-boost-crop-yields-seed-innovation-ensure-food-security-xi-jinping-calls-investment?utm_source=rss_feed

China has vowed to boost crop yields and accelerate innovation in the seed industry to ensure food security as it mapped out directions for agricultural policies for the coming year during a national rural work conference earlier this week.

With a population of 1.4 billion to feed, China would focus on improving the per unit yield and stabilising sowing acreage to pursue another bumper harvest next year after its grain output hit a record high this year, according to an official readout from the central rural work conference.

Officials also pledged to keep total output above 650 million tonnes, a level China has achieved since 2015, with Beijing placing a growing importance on self-sufficiency in the face of increasing climate shocks and an uncertain global food market.

China should maintain the increased production of soybeans, a major source of Beijing’s insecurity due to the huge volume of imports required annually, after a national campaign to enlarge growing areas since 2019, President Xi Jinping said in a note to the meeting.

China’s seeds, in an agricultural choke hold, must see breeding advancements

Calling arable land China’s “lifeblood”, Xi urged for an increase in investment in “high-standard” farming fields, with a focus on the rich black soil in the northeast, plain areas and well-irrigated regions.

As the world’s top crop producer and consumer, China harvested a record 695.41 million tonnes of grain in 2023, making it the ninth consecutive year it topped 650 million tonnes, the National Bureau of Statistics said last week.

But potential for further increases has become very limited, said Du Zhixiong, deputy director of the Rural Development Institute at the Chinese Academy of Social Sciences (CASS).

“There must be new measures to remain at this level … it’s very important to emphasise the role of technological advancement in seeking future growth,” he said in an interview with official agricultural news portal ntv.cn on Thursday.

Much of the hope has been placed on domestically-developed seeds, a major weak link that China has been trying to strengthen due to its importance to agricultural productivity.

The industry has long been dominated by large international companies and seeds bred locally are generally deemed of low quality and efficiency.

Since a seed industry revitalisation plan was launched in 2021, China has pushed its self-reliance rate from 70 to 75 per cent, the Ministry of Agriculture and Rural Affairs said on Wednesday.

China has also been building germ plasma databases for crops and fisheries, as well as livestock and poultry, while a national survey on germ plasma resources has been carried out over the past three years.

It can now rely completely on its own breeding technology in hogs and dairy cows, the ministry said.

As climate change poses an increasing challenge to farming, agricultural officials at the rural work conference also urged for improvements in China’s ability to deal with extreme weather events.

China is making its land more fertile and productive, but it lacks capability in preventing natural disasters, said Du.

“This is a very big problem, especially as there may be great impact from climate change in 2024,” he warned.

Extreme weather has plagued China’s agricultural areas in the past year, including unusually heavy rainfalls in central China’s wheat production area in the spring and floods in northern China in the summer.

The rural work conference also called for a scheme to balance the interests of different localities as farming becomes more concentrated in certain areas.

A focus on farming still means small economic rewards for local governments as profits remain low, according to a report on the rural economy co-issued by CASS in May.

The average local fiscal revenues per capita in the 13 major food-producing provinces was about 6,300 yuan (US$885) in 2021, about 3,500 yuan lower than the average level of the other provinces, it said.

China boy hands in bag containing US$22,000 to police despite dire family situation with sick father in hospital, believing owner may need money

https://www.scmp.com/news/people-culture/social-welfare/article/3245684/china-boy-hands-bag-containing-us22000-police-despite-dire-family-situation-sick-father-hospital?utm_source=rss_feed

A 13-year-old boy found 158,000 yuan (US$22,000) on the street and took the money to the police rather than keeping it for his family even though they were in a precarious financial position.

The family of Yang Xuan from Jiangsu province in eastern China has struggled to make ends meet since the boy’s father was hospitalised after a cerebral haemorrhage.

On December 3, Yang was walking home with his mother, Zhu Xiaorong, when he noticed a white bag lying next to a stone tablet. He opened it out of curiosity.

“I did not expect there to be such a large sum of money inside the bag,” he told Jiangsu TV.

Despite his surprise, Yang tried to catch the owner, who had just left on a bicycle, but the man was cycling away too fast, and Yang could not catch up.

Yang told his mother: “The owner must be distraught, and he probably needs the money to save a life, like my father. Let’s call the police.”

A police officer quickly arrived at the scene, and Yang and his mother followed the officer to the police station. They then tracked down the bag’s owner with help from the police.

Yang’s school learned of the good deed and held a ceremony to honour him, with a police officer saluting Yang.

The selflessness was particularly notable because the family needed the money, with the television report showing clips of Yang’s father lying on a sick bed, unable to move on his own.

Despite those circumstances, Yang did not consider keeping the money for his family. On the contrary, he made a considerable effort to return it to the owner as soon as possible.

The story of kind-hearted Yang touched many people in China, with one online observer calling him “a very good boy”.

Another said: “His parents have done an excellent job of raising him.”

A third commented: “A kind heart is more precious than money.”

Stories about do-gooding honest children regularly touch hearts in China.

In April, a teenage boy in northwestern China was hailed as a hero after he picked up a lost three-year-old girl and carried her to a police station.

In July last year, two pupils in eastern China won plaudits after they insisted on handing in 10,000 yuan (US$1,400) to the local police that they had found inside a wallet someone had forgotten on a shared bike.

---

Chinese FM Wang Yi warns Philippines to ‘act with caution’ in South China Sea maritime dispute

https://www.scmp.com/news/china/diplomacy/article/3245841/chinese-fm-wang-yi-warns-philippines-act-caution-south-china-sea-maritime-dispute?utm_source=rss_feed

Chinese Foreign Minister Wang Yi has told his Philippines counterpart that Manila should “act with caution” and “return to the right path” to manage the two countries’ maritime disputes.

“China-Philippines relations are now standing at a crossroads. Faced with the choice of what path to follow, the Philippines must act with caution,” Wang said in a phone call with Enrique Manalo on Wednesday, according to a Chinese foreign ministry readout.

“If the Philippine side misjudges the situation, goes its own way, or even colludes with ill-intentioned external forces to continue to stir up troubles, China will defend its rights in accordance with law and respond resolutely,” Wang said, in a veiled swipe at the US, Manila’s long-time ally.

The call – which the ministry said was made at the Philippines’ invitation – followed months of rising tensions in the South China Sea – a key global conduit connecting Northeast and Southeast Asia – where both countries have overlapping claims.

Traded accusations between Manila and Beijing over recent confrontations have sent China-Philippines ties into a tailspin.

These have included the use of water cannons against Philippine vessels, near Scarborough Shoal on December 9 and another near Second Thomas Shoal on December 10, according to Manila.

Beijing accused the Philippine vessel involved in the incident at Second Thomas Shoal – where the Philippines grounded the second world war vessel Sierra Madre in 1999 to protect its maritime claim – of intentionally ramming its ship.

During the call, Wang said the fraught relationship between the two countries was the result of a change in policies by Manila.

“The serious difficulties facing China-Philippines relations are rooted in the fact that the Philippines has changed its long-standing policy stance, reneged on its own commitments, and continued to provoke and stir trouble at sea,” he said.

Wang added that China “is always committed to resolving maritime differences through dialogue”.

In a brief statement, Manalo said the exchange was frank and candid. “[We] ended our call with a clearer understanding of our respective positions on a number of issues”. He also noted the importance of dialogue in addressing the issues.

Could China-Philippines dispute derail plans to resume military talks with US?

According to the Chinese readout, Manalo said the Philippine side is willing to strengthen dialogue with China in good faith, and hopes to manage the differences in a way acceptable to both sides to cool down tensions.

The Chinese readout said the two countries also agreed to hold a meeting “as soon as possible” under the bilateral consultation mechanism – set up by Beijing and Manila in 2017 to discuss South China Sea incidents and avoid escalations.

Last month, Chinese President Xi Jinping and his Philippine counterpart Ferdinand Marcos Jnr met on the sidelines of the Apec summit to discuss ways to bring down the temperature, but the situation has not yet improved.

Earlier this week, Marcos said a “paradigm shift” was needed in the handling of the South China Sea issue, and described Manila’s current diplomatic efforts with China as heading “in a poor direction”.

Manila’s strengthened ties with Washington and its allies in Asia have also upset Beijing, which has described the US as an “external force” that is provoking the Philippines against China.

In April, the Philippines granted US access to four additional military sites that could boost the Western power’s capabilities in relation to both Taiwan and the South China Sea.

And in a boost for its security cooperation with Japan – another of Washington’s regional allies – the Philippines received a Japanese-made air surveillance radar system on Wednesday, to be installed on an airbase looking out on the disputed waters.

China men drilled small holes into 76 bottles of pricey Moutai, siphoning off fiery Chinese spirit before replacing it with cheap substitute detained

https://www.scmp.com/news/people-culture/trending-china/article/3245580/china-men-drilled-small-holes-76-bottles-pricey-moutai-siphoning-fiery-chinese-spirit-replacing-it?utm_source=rss_feed

Authorities in eastern China seized a batch of counterfeit Moutai and detained two suspects accused of participating in a scheme of drilling extremely tiny holes into the bottles, siphoning off the real liquor before injecting the bottles with a cheap alternative.

The Market Supervision Bureau in Zhejiang province in eastern China received a tip last month from a wine retail store that suspected the 95 bottles of Moutai it had bought from a trading company in Ningbo were fake.

The batch of these spirits had a market price of 250,000 yuan (US$35,000), The Paper reported.

The Ningbo trading company told the market bureau they purchased the sham drinks from a group of hawkers who said they represented Kweichow Moutai, the producer of the famously expensive baijiu brand.

The official investigation found 76 bottles contained holes with a diameter of 0.2 mm and were filled with bogus liquor.

The perpetrators had carefully peeled the labels off the bottle before drilling the hairline holes, then covered them with synthetic cement before reapplying the labels.

“Even salespeople in the wine industry would hardly notice the holes, let alone ordinary consumers, ” said a market bureau official.

Police in Ningbo have arrested two suspects thanks to clues from the Hangzhou market authority. The case is still under investigation.

Kweichow Moutai’s signature product, Feitian Maotai, has an alcohol content of 53 per cent and is sold for around 3,000 yuan (US$420) per 500ml bottle.

Moutai, better known as Maotai in China, is such a popular drink on the mainland that even an empty bottle can fetch upwards of US$30 online.

Kweichow Moutai has adopted a “cross-sector” marketing strategy by co-branding with ice cream companies and coffee makers to attract young consumers.

In September, Kweichow Moutai and mainland brand Luckin Coffee released a new coffee called Jiangxiang Latte, which proved very popular.

Because Moutai is sought after, the brand must take extra measures to prevent counterfeiting.

For example, the Post reported that in 1996, the company introduced a bottle whereby the baijiu can only be poured out of the cap and not refilled.

Additionally, every bottle has a unique radio frequency identification code and individual serial numbers.

China’s secret space plane emits strong signal to the ground when passing North America: satellite tracker

https://www.scmp.com/news/china/science/article/3245815/chinas-secret-space-plane-emits-strong-signal-ground-when-passing-north-america-satellite-tracker?utm_source=rss_feed

China’s space plane could be sending signals to a hidden ground station or a ship near North America’s west coast, said an amateur astronomer who has been tracking the craft since it entered Earth’s orbit last week.

Strong emissions were detected at the frequency of 2280 megahertz while the uncrewed reusable plane was flying over British Columbia, Canada, where Scott Tilley is based, he told the South China Morning Post in an email on Tuesday.

“I’m seeing a pattern in its radio emissions while over me and it appears to favour low-elevation western passes,” said Tilley, who helped Nasa find its long-lost IMAGE satellite in 2018.

“This could indicate a clandestine ground station on the west coast of North America or on a ship off the coast,” he said while emphasising that he was speculating.

The secretive Chinese plane, which is seen as a counterpart of the US military space plane X-37B, has been followed closely by satellite trackers around the world since it took off from the Gobi Desert last Thursday.

According to Tilley and a team in Switzerland that specialises in optical-band space surveillance, the launch on Thursday resulted in at least six objects now flying in low Earth orbit.

That included the space plane itself, Tilley said, which he designated object A and appeared to be very bright with a stable attitude control.

There was likely to be a pair of satellites (objects D and E) that were released by the plane and gave off radio signals similar to object A, “but without any form of data, just idle filler”, he said.

Tilley said that while the purpose of the satellite duo remained unknown, one possibility was that they could be used to “test rendezvous and retrieval operations”.

SpaceX rival: China’s LandSpace sets ‘challenging’ reusable rocket targets

There was also debris belonging to the Long March 2F rocket that lifted the space plane into orbit.

Among them, object B was “very bright” and its light curve pointed to a rocket upper stage, the European team wrote on the social media platform X (formerly Twitter). Objects C and F also seemed to be rocket debris because they were tumbling and dim, Tilley said.

It is the Chinese plane’s third mission following a two-day maiden flight in 2020 and a second flight which lasted nine months. The plane reportedly released mysterious objects during both previous missions.

There have been no official images or details of the plane. It is not known how long the current mission will last.

Meanwhile, the Boeing-built X-37B, which has also been shrouded in mystery since its debut flight in 2010 because of its military nature, is waiting to lift off on a SpaceX Falcon Heavy rocket from the Kennedy Space Centre in Florida on December 28.

How Chinese scientists are extracting uranium from seawater faster than ever

https://www.scmp.com/news/china/science/article/3245779/how-chinese-scientists-are-extracting-uranium-seawater-faster-ever?utm_source=rss_feed

Chinese scientists say they have found a way to efficiently extract uranium – the heavy metal used to fuel nuclear reactors – from seawater using electricity.

The team from Northeast Normal University in Changchun, Jilin province developed an electrode to capture the uranium through electrochemical reactions.

They say this is at least three times faster than existing methods, and is effective at shielding against impurities in the seawater – meaning it could be suitable for large-scale applications.

The researchers, led by Associate Professor Zhao Rui and Professor Zhu Guangshan, published the results of their groundbreaking study in the peer-reviewed journal ACS Central Science on December 13.

China is building more nuclear power plants than any other country, but the country’s uranium ore is low grade so it relies on imports to fuel its reactors.

The ability to extract uranium from seawater could be a game changer for China’s – and the world’s – energy structure, and progress on the technology is closely watched by policymakers and the nuclear industry.

Uranium has been an essential element for nuclear power since 1942, when physicist Enrico Fermi built the first nuclear reactor in Chicago.

It has traditionally been extracted from terrestrial rock formations, but the finite nature of these deposits has led scientists to seek alternative sources of uranium.

Key among them is the oceans, which hold an estimated 4.5 billion tonnes of uranium – nearly a thousand times more than land-based reserves, according to the Nuclear Energy Agency.

Chinese nuclear firm hails step forward in quest to build ‘artificial sun’

But extracting uranium from seawater is an immensely challenging task due to the extremely low concentration – at 3.3 parts per billion – and the presence of interfering ions in a complex marine environment.

The difficulty of this task is akin to finding a gram of salt in 300,000 litres of fresh water, if not more challenging.

To tackle the challenge, the team created an electrode by coating a carbon fibre woven fabric with two monomers – molecules that can react with other molecules to form structures like polymers. They were polymerised to create an electrode material with microscopic bumps and depressions, which are known as porous aromatic frameworks, or PAFs.

PAFs have sites for catalysis, to turn uranium ions into uranium compounds, and sites for adsorption to collect the compounds. The porous nature of the carbon fibre fabric also helps to trap uranium ions.

According to the study, this electrochemical method could improve the capacity and rate of extraction compared to the more traditional method of physicochemical adsorption.

“Uranium extraction with PAF electrodes (PAF-E) shows higher uptake and faster kinetics compared to physicochemical adsorption,” Zhu said in the paper.

China gives green light to its first thorium-powered nuclear reactor

In tests conducted on water from the Bohai Sea, the team used the electrode to extract 12.6 milligrams of uranium per gram of material over 24 days, with saturation still not reached at that point, according to the study.

The scientists said that was better than most other reported uranium extraction methods.

The tests also suggested that the electrode was stable through multiple extraction cycles, despite the presence of competing metal ions in the seawater.

“This good selectivity was attributed to the alternating voltage applied to the electrodes, which repelled unbound ions,” Zhu said.

He said the electrodes could offer a more effective way to extract uranium from seawater and that the study had improved understanding of the mechanisms behind electrochemical uranium extraction.

The study was funded by the National Key R&D Programme of China and the National Natural Science Foundation of China.

Mainland China suspends tariff cuts on 12 Taiwanese imports from January in response to ‘discriminatory measures’

https://www.scmp.com/economy/china-economy/article/3245816/mainland-china-suspends-tariff-cuts-12-taiwanese-imports-january-response-discriminatory-measures?utm_source=rss_feed

Beijing on Thursday suspended tariff reductions of some Taiwanese products under the cross-strait Economic Cooperation Framework Agreement (ECFA) from January 1.

Twelve categories of imports from Taiwan, including propylene and paraxylene, would be affected, according to the Customs Tariff Commission of the State Council.

The ECFA, signed in 2010, includes an 806-item list of goods approved for tariff reductions.

‘Obvious meddling’: Taiwan rebukes Beijing’s claim of island import ‘barriers’

The commission accused Taiwan of “unilaterally adopting discriminatory measures against mainland exports,” saying the island’s prohibitions, restrictions and other measures violated provisions under the ECFA.

It also urged Taiwan to take effective measures to lift trade restrictions on the mainland Chinese products.

On Friday, Beijing said that Taiwan had placed “barriers” on the import of numerous goods from mainland China during an eight-month probe.

More to follow ...

---

China emerged from ‘zero-COVID’ in 2023 to confront new challenges in a changed world

https://apnews.com/article/china-yearend-covid-economy-f6edc288b95099a415705a9203ea5ab5FILE - Visitors burn incense as they pray on the first day of the Lunar New Year holiday at the Lama Temple in Beijing on Jan. 22, 2023. (AP Photo/Mark Schiefelbein, File)

2023-12-21T01:17:35Z

BEIJING (AP) — China’s prospects for 2024 look uncertain, as a year that opened free of COVID-19 lockdowns winds down without the dreamed of robust recovery for the world’s No. 2 economy.

The wars in Gaza and Ukraine are straining China’s ties with the West. A U.S.-China leaders’ summit helped get relations back on track, but also clearly defined the stark divide between the two global powers. To counter a U.S.-led world order, China is pushing alternative visions for global security and development whose prospects depend partly on restoring its own economic vitality.

Pandemic-related restrictions ended, China still faces long-term, fundamental challenges: a falling birthrate and aging population — India surpassed it as the world’s largest country in April — and its rivalry with the United States over technology, Taiwan and control of the high seas. Another: to balance the ruling Communist Party’s tightening grip on myriad aspects of life with the flexibility needed to keep the economy dynamic and growing.

“This year started on a such optimistic note,” said Wang Xiangwei, a China expert and former editor-in-chief of the South China Morning Post newspaper. “And now (as) we are ending 2023, I think people are getting more worried about what ... will be in store” for next year.

A WINTER OF HOPE

As China’s mask and testing requirements faded, for the first time in three years crowds thronged temples and parks last January for the Lunar New Year.

“Life is returning to normal,” said Zhang Yiwen, visiting a historic Beijing district bustling with tourists. “I look forward to seeing how the economy grows in the new year and what the country can accomplish in the international market.”

Hopes for warming ties with Washington were dashed with the shooting down of an apparently off-course Chinese balloon that drifted over the United States in February. Secretary of State Antony Blinken canceled a trip to Beijing. A month later during the annual session of the largely ceremonial legislature, Chinese leader Xi Jinping accused the U.S. of seeking to isolate and “contain” China.

But China’s re-opening brought a parade of foreign leaders to Beijing as it strengthened links with the Mideast and other developing regions and showed support for Russia, and set about mending relations with Europe, the U.S. and Australia.

China raised its international profile when Saudi Arabia and Iran reached an agreement in Beijing to reestablish diplomatic relations. Shi Shusi, a regular analyst on Chinese TV, highlighted China’s capacity to play a diplomatic role in the developing world.

“China has traditional friendships with these countries,” Shi said. “If we provide some assistance and strengthen cooperation ... it seems to be a realistic solution for China to participate in the game of great powers and in global governance.”

During the National Congress, Premier Li Keqiang announced an economic growth target of around 5% for the year. But Li, who died in October, was on his way out, replaced by close associates of Xi as he further consolidated his hold on power.

SPRING’S ELECTRIC VEHICLE SURPRISE

China’s economic rebound was short-lived, though the Shanghai auto show showcased one gleaming bright spot: electric vehicles. Exports of EVs have soared, to the extent that by September, the European Union launched a trade investigation into Chinese subsides to EV makers.

“The EV market is getting better year by year, even though the overall economy is not promising,” said Li Jing, a salesperson at a small electric car dealer in Wuwei, a city of 1.2 million people in eastern China’s Anhui province.

Li said his pay remained steady through the pandemic. Still, he was putting off plans to buy an apartment, expecting housing prices to fall amid a real estate crisis that has many Chinese cutting back on spending, hobbling efforts to tap consumer demand to drive economic growth.

A SUMMER OF ECONOMIC DOLDRUMS

Blinken made his balloon-delayed trip to Beijing, followed by visits by U.S. Treasury Secretary Janet Yellen, climate envoy John Kerry and then Commerce Secretary Gina Raimondo.

Meanwhile, the economy was slowing as growing numbers of property developers defaulted on debts, caught short in a crackdown on excessive borrowing that began in 2020 and has hamstrung the entire industry. The jobless rate among young Chinese surged to about one-in-five, leading the government to stop publishing that data.

“Life hasn’t returned to how it was before the pandemic,” said Liu Qingyu, a young worker in Shanghai’s financial sector who was hoping for more opportunities but instead is fretting over layoffs at her company.

When the Zhongzhi Enterprise Group missed payments to investors, worries deepened that the real estate meltdown could spread into a financial crisis. The government began loosening restrictions on lending for home purchases and stepped up spending on construction, though housing prices kept falling.

“I think in July, the Chinese leadership realized that the economy ... was in more serious trouble than (they had) expected,” Wang said. “So they started to pump more money into the economy. But all those measures were considered incremental.”

Small business owners like Dong Jun cut costs to avoid going into the red. Orders were less than half the pre-pandemic level, he said.

Stewed meat maker Xinyang Food Co. laid off more than a dozen employees, reducing its workforce to 20. “We are afraid of losing money,” said Gao Weiping, a co-owner and manager.

AUTUMN’S CHALLENGES

Relations with the United States warmed further in the fall, though fundamental differences over technology and territorial disputes remain.

Visits by Philadelphia Orchestra members, the American Ballet Theatre, American World War II veterans and California Gov. Gavin Newsom set a friendly tone ahead of a November meeting in San Francisco between Xi and U.S. President Joe Biden.

“China has not treated its customers very well over the past five years because of geopolitical tensions,” Wang said, referring to the American, European and other export markets. “Now, China wants to focus on growing the economy. So China will have to make nice with its biggest customers.”

Still, ahead of the Biden-Xi meeting, the U.S. broadened its export controls on advanced computer chips. And a collision of Chinese and Philippine ships in the South China Sea harkened to tensions that could draw the U.S. into conflict.

As the year’s end drew near, the passing of former U.S. Secretary of State Henry Kissinger underscored how times have changed. Kissinger helped engineer the normalization of China-U.S. ties in the early 1970s and had met with Xi in Beijing in August at age 100. But his was another era, when the two sides found common ground despite their disagreements.

The future will test the wisdom of both Chinese and Western leaders, Shi said.

“The future for all of us lies not in making a big fortune but in security, in the effort to ... avoid global conflicts,” he said.

Li Yu just wants a job. He wound up at a day labor market in Beijing in September after his family’s restaurant in northeast China went bankrupt. He started out earning about 300 yuan ($40) for a 12-hour day as a package delivery person. By December, that had fallen almost by half.

“Honestly, all are just trying to get a job, to put food on the table.” he said, describing how people jostle for jobs and even end up in fights.

Analysts now think the government will achieve its 5% growth target but they expect a slowdown next year.

This matters not only for China’s workers but for the whole world. The U.S. economy is the foundation of America’s status as the dominant global power. Even after its auto and steelmakers faltered, Silicon Valley led the way into the 21st century.

In his second decade in power, Xi aims to restore China’s global stature. That will depend largely on the Communist Party’s capacity to overcome its many challenges in 2024 and beyond.

___

Associated Press researchers Yu Bing and Wanqing Chen and video producer Caroline Chen contributed

How to cure China’s declining consumer prices divides opinion as deflation signs deepen

https://www.scmp.com/economy/economic-indicators/article/3245752/how-cure-chinas-declining-consumer-prices-divides-opinion-deflation-signs-deepen?utm_source=rss_feed

What should China do to tackle declining prices? That is a question that has generated heated exchanges among economists and analysts as the world’s second-largest economy struggles with slowing growth and dangerously low inflation.

While many parts of the world are facing high costs, China is an outlier. Its consumer prices fell by 0.5 per cent in November, year on year, marking the sharpest decline in three years.

Producer prices, which are measured at the factory gates and heavily driven by the cost of commodities and raw materials, also dropped by 3 per cent in November and have remained in negative territory for the past year.

Larry Hu, chief China economist at Macquarie Group, estimated that the consumer price index (CPI) may only rise by 0.3 per cent in 2023, much lower than Beijing’s target of “around 3 per cent.”

Beijing has resisted so-called flood-like stimulus – large scale monetary and fiscal expansion – often a textbook response to slow growth and low inflation.

However, there are rising concerns that policymakers might not be doing enough to prevent China from slipping into a Japanese-style deflation.

Comparisons have been consistently drawn with Japan, which experienced two so-called lost decades of stagnant growth and deflation after its real estate and asset bubble burst in the early 1990s.

Hong Kong-born American economist Steven Ng-Sheong Cheung, known for his pro-market stance, argued earlier this month that China’s central bank needs to raise its inflation target to 6 per cent “as soon as possible”, and then adjust it to 4 per cent to rescue its sluggish economy.

Economist calls for China to stimulate activity with controlled inflation rate

Cheung pointed out that falling property prices had already affected wealth among Chinese homeowners, and that deflation would be “disastrous” for the economy.

His blog post, published on December 8 on Chinese social media platform Weibo, triggered a backlash among the general public and analysts.

By raising its inflation target, critics said, China’s central bank would need to increase the size of its balance sheet and inject new cash into the economy, adding to the risk of asset bubbles.

“If we really push inflation to 6 per cent as proposed [by Cheung], without supplementing it with other means to stabilise inflation expectations, it may be difficult for people to believe that inflation will only stop at 6 per cent,” Bank of China International chief economist Xu Gao said in a blog post on Sunday.

He added that the US Federal Reserve has struggled to curb inflation even after raising interest rates.

Xu said that low inflation in China is a “symptom” largely driven by the inability of property developers and local governments to raise funds.

Financing conditions remain difficult for Chinese property developers, some of which have already defaulted on their debts, while some local governments have been directed by Beijing to curb borrowing as a result of their already high leverage.

Lu Gan, associate professor at Central University of Finance and Economics, argued that setting a higher inflation target does not necessarily mean that there will be “excess” money in the markets.

“Once the central bank’s policy efforts lead to the realisation of inflation expectations and speed up money circulation, there is no need to issue too much money, it will flow from some channels to the overall economy,” Lu said in a blog post on Monday.

And property developers and local governments are not the only channels for credit growth, Lu argued.

Banks no longer rely on the two groups as key customers, Lu said, citing his own research on lenders.

Li Xunlei, chief economist with Zhongtai Securities, suggested that the government can try to set a lower limit for price targets.

“In the past, 3 per cent CPI has been set as the upper limit. In the future, a lower limit of no less than 1 per cent can be set, which will help raise expectations,” Li said on Monday.

During the annual central economic work conference, which concluded last week, policymakers acknowledged the deflationary pressure facing China’s economy.

It was the first time that the top leaders had discussed a “price target” in the tone-setting meeting, according to Macquarie Group’s Hu.

“In other words, monetary policy could turn more accommodative in the face of deflationary risks, implying more policy rate and reserve requirement ratio cuts to come in the months ahead,” Hu said last week.

What explains the changes to Hong Kong leader’s annual duty visit to Beijing? They signal Chinese President Xi Jinping’s bigger, more direct role in city affairs, observers say

https://www.scmp.com/news/hong-kong/politics/article/3245800/what-explains-changes-hong-kong-leaders-annual-duty-visit-beijing-they-signal-chinese-president-xi?utm_source=rss_feed

A seeming procedural change this week to the annual duty visits by the leaders of Hong Kong and Macau belies its deeper, more substantive impact.

Giving this assessment, observers said that the changes reflected the strengthened leadership roles of Chinese President Xi Jinping and the Communist Party in the cities’ affairs, as well as a streamlined bureaucracy aiming to improve policy delivery and accountability.

With the change, Beijing was also signalling its expectations that the administrations deliver “more substantial” results in key areas with a clearer reporting line as the format of the visits were made “more institutionalised”, they said.

For Hong Kong, led by Chief Executive John Lee Ka-chiu, the changes could result in improved execution of policies in matters of national security and district administration, policy pundits said after analysing remarks from Xi and Lee.

The purpose of the duty visits, which have been carried out every year since Hong Kong and Macau were returned to Chinese rule, is for the chief executives to brief state leaders about their work.

This year, there were a few noteworthy changes to the annual trips.

Firstly, the Chinese president and the premier, who heads the State Council, together met each chief executive at the central government’s headquarters in Zhongnanhai during their recent duty visits.

Hong Kong leader ends duty visit vowing to boost ties with mainland neighbours

Xi, also the general secretary of the Chinese Communist Party, on Monday presided over the closed-door meeting in which city leader Lee sat to his right and Premier Li Qiang to his left, along with senior officials overseeing Hong Kong affairs flanking both sides of the table.

In the session’s first four minutes, in which the press was present, the premier did not speak to Lee, unlike his predecessors. The chief executive briefed the leaders on the city’s progress after Xi gave him recognition for his work and set out his own expectations

The change marked a stark contrast to previous duty visits between 1997 and 2014 in which the chief executive would sit next to the premier and then the president in two separate meetings, much like how foreign leaders were received by their Chinese counterparts.

From 2015 onwards, the annual meetings were held at a long office table with mainland officials presiding over the conversation.

Lau Siu-kai, a consultant from the semi-official Chinese Association of Hong Kong and Macau Studies think tank, said the new arrangement was likely to be linked to the restructuring of Beijing’s top office overseeing Hong Kong and Macau affairs into a higher-level outfit that now reports to the party’s Central Committee instead of the State Council.

“The party is the maker and overseer of the most important Hong Kong policies in the past few years,” Lau said, referring to the Beijing-imposed national security law and the electoral overhaul to ensure only “patriots” ruled Hong Kong.

“Xi has a critical identity as the leader of the party that exercises overall leadership.

“This change [to the duty visits] was made to highlight the superior roles of Xi and the party on an occasion that could be seen by the public.”

Hong Kong bid to lure more overnight visitors and develop high-quality tourism

The revamping of Beijing’s top office overseeing Hong Kong affairs, announced in March, involved a series of changes aimed at strengthening the party’s leadership and improving accountability.

The second major change during the recent duty visit was the line-up of mainland officials, which for the first time included four of the seven members of the Politburo Standing Committee.

Cai Qi, director of the General Office of the party’s Central Committee, and Chinese Vice-Premier Ding Xuexiang, leader of the Central Leading Group on Hong Kong and Macau Affairs of the party’s Central Committee, also attended the meeting.

In past years, officials from the Hong Kong and Macau Affairs Office and Beijing’s liaison offices in both cities were the key figures accompanying the state leaders.

“This is a gesture to reflect the great importance Beijing attaches to Hong Kong, and also proof of a streamlined bureaucracy with unified communication that aims to improve efficiency in policy delivery,” said Tam Yiu-chung, a former Hong Kong member of the National People’s Congress Standing Committee, China’s top legislative body.

Tam also pointed out that leaders of the United Front Work Department and the Central Political and Legal Affairs Commission, both under the Central Committee, attended the meeting for the first time.

He said he expected their attendance would help the department better coordinate Hong Kong’s patriotic organisations, and it would be for the commission to ensure that the city’s plan to enact its own security legislation would align with Beijing’s policy direction.

The Basic Law, Hong Kong’s mini-constitution, declares that the city enjoys a high degree of autonomy. The central government in recent years has increasingly emphasised its “comprehensive jurisdiction” over the city.

The third change noted by observers was that the duty visits were becoming more formal, or “more institutionalised”.

President Xi Jinping praises Hong Kong leader over national security, district poll

Footage from state media showed that both Lee and Macau Chief Executive Ho Iat-seng read out their opening remarks separately and were seen carrying booklets with similar covers.

After the meeting on Monday, Lee met the press and outlined the five key topics he brought up with Xi: the city’s timeline for enacting its own security legislation as required by Article 23 of the Basic Law; the recent district council election; improving governance and the livelihoods of residents; and the city’s international connectivity.

Viewing the topics Lee outlined in the context of Xi’s remarks revealed the priorities of the Hong Kong administration, veteran China watcher Johnny Lau Yui-siu said.

In his speech, Xi praised Lee for firmly safeguarding national security and revamping Hong Kong’s district council system.

Lau said despite the poll’s record low turnout of 27.5 per cent, it symbolised “the last piece of the puzzle” in Beijing’s electoral reforms to ensure no anti-China elements emerged in Hong Kong’s governing structure.

He added he expected that fending off national security threats would still be a priority for Beijing, despite the recent meeting between Xi and US President Joe Biden helping to ease tensions between the two superpowers.

Hong Kong’s priorities, therefore, would not only be focused on enacting its own security law, but also enhancing awareness of national security, Lau said.

“This is why the district council system will play a key role in promoting the policies,” he said.

“The Hong Kong government has to deliver substantial results without delays and will have no one to blame for any policy failure in the future.”

China teacher orders girls caught eating in class slap themselves in face then asks boys to help with beating, triggering official probe

https://www.scmp.com/news/people-culture/trending-china/article/3245574/china-teacher-orders-girls-caught-eating-class-slap-themselves-face-then-asks-boys-help-beating?utm_source=rss_feed

A primary school in eastern China’s Jiangsu province suspended a teacher after the woman told disobedient female students to slap themselves, and then asked boys in the class to smack the girls when they did not hit themselves forcefully enough.

On December 8, the teacher, surnamed Zhu, noticed some girls were eating snacks during her class. When she asked the girls who had snacks, nobody raised their hands to admit the mistake, according to the Guangzhou Daily.

As punishment, Zhu ordered the girls in the class to stand up and slap themselves on the face 10 times. After some of the girls hesitated or didn’t hit themselves very hard, Zhu asked the boy students if any of them were willing to slap the girls, with some of them nodding yes.

Zhu then selected some of the boys to slap their female classmates, according to the report.

The punishment went viral online after furious parents complained in their class WeChat group.

“My daughter was slapped five times by a boy. Her face was still red when she returned home,” said one parent.

Another parent challenged the teacher by asking: “Why was my girl beaten when she did not eat any of the snacks?”

A third parent demanded that the boys apologise to the girls and admonished the teacher for “letting boys believe that it is reasonable to hit girls.”

A mother of a boy who slapped a girl defended her son by saying: “My boy is young and could not stand up to a teacher who just told him to slap the girls.”

After the fury, Zhu apologised in the chat group: “I did not think carefully about my actions. It is my fault, and I apologise to all the students and parents.”

Regardless, Zhu was removed from her teaching position and could face additional punishment, said the school headmaster.

She is also under the probe of the local education authority.

“Teacher Zhu was in a volatile mood and lost her temper because of some family matters she was dealing with,” the headmaster told The Paper.

Teachers applying corporal punishment to students often trend on mainland social media.

Earlier this year, a teacher in central Hunan province caused outrage for hitting a nine-year-old girl on the head with a metal ruler, leading her to receive emergency treatment for a shattered skull.

US lawmakers urge Antony Blinken to slap sanctions on Hong Kong, Chinese officials for activists’ arrest warrants

https://www.scmp.com/news/china/article/3245806/us-lawmakers-urge-antony-blinken-slap-sanctions-hong-kong-chinese-officials-activists-arrest?utm_source=rss_feed

The chairs of two bipartisan congressional panels are urging America’s top diplomat to impose sanctions on Hong Kong and Chinese officials involved in issuing arrest warrants and bounties last week on five opposition figures in the former British colony.

In a letter dated December 19, the top Democrats and Republicans on the House select committee on China and on the Congressional-Executive Commission on China asked US Secretary of State Antony Blinken to determine by January 19 whether seven Hong Kong-based officials were eligible for sanctions under existing law or executive order.

Officials targeted by the panels included the city’s justice minister, Paul Lam Ting-kwok; Commissioner of Police Raymond Siu Chak-yee; Director of Public Prosecutions Maggie Yang Mei-kei; Senior Superintendent of Police Bruce Hung Ngan; Director of the Office for Safeguarding National Security Dong Jingwei; and assistant police commissioners Margaret Chiu Wing-lan and Dick Wong Chung-chun.

Lam, Siu and Yang were also named as targets in a sanctions bill introduced in November by Republican congresswoman Young Kim, chair of the Indo-Pacific subcommittee on the House Foreign Affairs Committee.

“The Hong Kong authorities’ egregious attempt to intimidate and silence US nationals engaged in peaceful political activism in the United States is outrageous and cannot be met with inaction,” said the letter signed by Republican congressmen Mike Gallagher and Chris Smith, along with Democratic congressman Raja Krishnamoorthi and Democratic senator Jeff Merkley.

The lawmakers also urged Blinken to work with Congress to combat transnational repression, a term typically referring to the targeting of diaspora by governments.

In a statement on Wednesday, Liu Pengyu, spokesman for the Chinese embassy in Washington, called Hong Kong’s issuance of warrants for “anti-China rioters” a “necessary and legitimate act that is in line with the international law and customary practice”.

“The US and the UK by endorsing and supporting these people have exposed their ill intention of destabilising Hong Kong,” he said in the statement.

US House panel vows to hold China accountable for targeting activists abroad

The Hong Kong trade office in Washington did not immediately respond to a request for comment.

In July, the Hong Kong government accused eight opposition figures of violating the city’s national security law and issued an HK$1 million bounty for each arrest. On December 14, they added five more people to the list, including US citizen Joey Siu.

Last week, Blinken condemned the issuance of the bounties.

The State Department also last week issued a statement lambasting the ongoing Hong Kong criminal trial of Jimmy Lai Chee-ying, founder of the now-defunct Apple Daily newspaper. The former media tycoon is charged under the national security law with colluding with foreign forces.

China reportedly suspends US$6.5 billion currency swap agreement with Argentina

https://www.scmp.com/news/china/diplomacy/article/3245805/china-reportedly-suspends-us65-billion-currency-swap-agreement-argentina?utm_source=rss_feed

China has suspended a US$6.5 billion currency swap agreement with Argentina, and the freeze remains in effect until President Javier Milei demonstrates a clear intention to engage with Beijing, Argentine media has reported.

News of the move comes just 10 days into the tenure of the new president, who campaigned on breaking ties with China, and underscores the challenge Milei will face in trying to follow through with those pledges.

Asked to comment, Zhicheng Xie, the spokesperson for the Chinese embassy in Argentina, declined to confirm the reports.

In Beijing, Chinese Foreign Ministry spokesperson Wang Wenbin also refused to confirm or deny the reports on Wednesday, only saying that China remained committed “to cooperation with Argentina on the basis of equality and mutual benefit”.

The funding is part of a deal renewed annually since 2009, crucial for Buenos Aires due to its negative holdings of international dollar reserves. Argentina has relied on such swaps as one of its few credit options, given the South American nation’s reputation for defaulting on international debt.

The funds, which China first promised in October to Sergio Massa, then Argentina’s economic minister, were primarily intended to bolster imports and meet obligations to the International Monetary Fund.

Massa was also running for president at the time and lost to Milei, whose campaign included significant anti-China rhetoric. Despite that, after his inauguration on December 10, Milei reached out to Chinese President Xi Jinping and requested continuation of those agreements, according to Pagina 12, an Argentine newspaper.

Two days later, Argentina’s foreign affairs minister, Diana Mondino, met with Wu Weihua, Xi’s special envoy to the inauguration, and urged a swift renewal of the agreement.

Argentina devalues peso more than 50% as part of ‘shock’ measures

According to Infobae, an Argentine news website, China’s decision followed Argentina’s purchase of used F-16 fighters from Denmark. The aircraft were originally manufactured in the US.

Confirmation of the deal has not been officially announced, but Infobae reported that Luis Petri, Argentina’s defence minister, met on Monday with Xavier Julián Isaac, the brigadier general of its air force, to confirm Milei’s intention to acquire the F-16s.

Before Milei’s election, Argentina had been in talks to acquire new Chinese JF-17 Thunder jets. That prospect reportedly displeased Washington, which is trying to limit Beijing’s influence in South America.

The US has not only approved the sale of the F-16s to Argentina but also pledged weapons, training, logistical support and spare parts for the jets.

Infobae also reported that China was waiting for “a clear gesture of goodwill or friendship” from Argentina to resume the currency swap.

The news site said that China’s ambassador to Argentina, Wang Wei, had been recalled to Beijing to discuss Milei’s plans and approach to projects Xi has prioritised.

Patricio Giusto of the Sino-Argentine Observatory in Buenos Aires called China’s freezing of funds concerning. Without the financial cushion provided by the US$6.5 billion, he noted, Argentina would need to renegotiate its debt with the IMF, demanding a search for alternative funding sources, a task Giusto deemed “not easy at all”.

Giusto suggested that China’s displeasure might extend beyond these individual decisions, seeking a broader shift in Argentine foreign policy. Buenos Aires’ recent refusal to join the China-led Brics economic bloc, and its potential abandonment of a Belt and Road Initiative project signal a possible realignment of Argentina’s international partnerships, which might prompt China to exert pressure through economic means.

“This interdependence we have with China is irreplaceable. We cannot replace it now with the US or Europe,” he said.

Milei’s administration, he said, should “try to understand better what China represents and how Chinese diplomacy works, because there will be a lot of trouble ahead if this [relationship] is not properly addressed”.

Israel-Gaza war: the 2 things Israel wants China to do to help restore peace in the Middle East

https://www.scmp.com/news/china/diplomacy/article/3245765/israel-gaza-war-2-things-israel-wants-china-do-help-restore-peace-middle-east?utm_source=rss_feed

In the past month or so China has stepped away from the sidelines of the Israel-Gaza war and towards the fray.

In mid-November, foreign ministers from Arab and Islamic countries stopped in the Chinese capital in their shuttle diplomacy to find an end to the conflict.

Later that month, Beijing released a five-point position paper, urging the UN Security Council to draw up a “concrete” timeline and road map for a two-state solution.

Then earlier this month Chinese Foreign Minister Wang Yi called his Iranian counterpart – again – as fears persisted that a second front could open along the Lebanon border.

China warns against more casualties as Security Council again delays Gaza vote

The engagement is just part of a series of efforts by China to contribute to a resolution to a conflict that risks spreading to the broader region.

But for Israel, the process is so far missing a crucial step – analysts say Israel would expect Beijing to adopt a “balanced” stance by first condemning Hamas’ actions and using its leverage over Iran to prevent a spillover of the conflict.

Otherwise, they say, Israel will see China’s approach merely as a way for Beijing to challenge the United States and position itself as a peace-seeking alternative.

Since the conflict erupted, Chinese officials have not condemned Hamas or referred to the group as a terrorist organisation. Israel defended its actions as self-defence, after Hamas – the Palestinian Islamist movement ruling Gaza – attacked southern Israel on October 7. However, China said Israel’s actions after the attack went beyond self-defence.

Chinese President Xi Jinping, in his first public speech on the war in November, called on Israel to stop imposing “collective punishment” on the people of Gaza, while renewing calls for a ceasefire and a two-state solution.

According to Jean-Loup Samaan, a senior research fellow at the National University of Singapore’s Middle East Institute, China has so far maintained its traditional pro-Palestinian policy and that “frustrated Israel”.

Israel, he said, initially hoped China would consider the scale of Hamas’ attack in October and the impact it had on Israeli society. Now, Israel did not expect much from China because its priorities were centred on the release of hostages and the military campaign in Gaza.

“In both cases, China cannot offer anything,” Samaan said.

China’s Wang Yi urges coordination with Iran in call to discuss Israel-Gaza war

Efraim Inbar, professor of political studies at Bar-Ilan University in Tel Aviv, went further, saying China had “clearly estranged Israel”.

“China in its recent actions became more hostile towards Israel. Israel definitely expects a more balanced position from China,” Inbar said.

Inbar said Israel viewed China’s repeated proposals of a ceasefire as an “anti-Israeli measure”. Beijing, he added, had yet to denounce Hamas and that was “very problematic”.

China’s unwillingness to condemn Hamas and the “active pressure” put on Israel to end its campaign was likely to damage China-Israel ties in the near term, said Jesse Marks, a non-resident fellow with the Stimson Centre’s China programme.

Meanwhile, China’s diplomatic efforts to stop the war appear to largely revolve around influencing other Middle Eastern nations.

China last month hosted senior officials from Arab and Islamic nations for “in-depth” talks on de-escalating the conflict, with the foreign ministry saying that China and Arab countries “share similar positions on Palestine issues”.

And when Zhai Jun, its special envoy to the Middle East, toured the region, he visited Qatar, Egypt, Saudi Arabia, the United Arab Emirates and Jordan but skipped Israel and Palestine.

While observers said a visit from a Chinese diplomat to Israel would be seen as a positive gesture, Galia Lavi, deputy director of the Diane & Guilford Glazer Israel-China Policy Centre, said Israel would want China to acknowledge Hamas’ actions before hosting a Chinese representative.

“If they [China] continue to ignore the terrible massacre that happened, I fail to see their contribution, as this kind of visit will only serve China’s interest,” she said.

Could China play a role in brokering Israeli-Palestinian two-state solution?

Marks said China would not intervene in any “salient” way.

But China – building on success it had in the Middle East helping Iran and Saudi Arabia normalise ties – was trying to create the “political space” for Arab countries to pursue a more unified position. That could help bridge a lack of unity among Arab states, which had historically been a major spoiler to the peace process, Marks said.

“Beijing will focus on building the platform for dialogue and facilitate talks. It will not exert any leverage on Israel or Hamas to come to the table,” he said.

“China sees its role in the current de-escalation process in Gaza as a mediator, but Israel is unlikely to view Chinese mediation efforts as meaningful or substantive.”

Israel-Gaza war: 2 months on, how many Palestinians have died?

Samaan said it would also indicate to Israeli leaders the limits of their partnership, at least on a diplomatic and strategic level. But he suggested that Beijing could still be of help to Israel. For example, China could exercise its influence on Iran to curb the flow of Tehran’s support to non-state organisations such as Hamas, the Palestinian Islamic Jihad or Hezbollah.

“China could also play a major role in the post-conflict phase in Gaza, especially in terms of reconstruction, but that implies a clear political plan for the post-conflict phase which doesn’t exist at the moment,” Samaan added.

Earlier this month, during meetings in Tehran between Liu Jianchao, Communist Party international department chief, and senior Iranian politicians and officials, China said it supported Iran to play a role in maintaining regional peace and stability, while Tehran pledged to step up coordination with China on international and regional affairs.

Iran is believed to be a key military and financial backer of Hamas, although it has denied any involvement in the group’s assault on Israel on October 7.

Lavi said China – despite having leverage over Iran for economic and diplomatic reasons – did not “seem willing to use this leverage to influence Iran in any way”. She said China had failed to exert its influence to deter Tehran and its proxies from attacking Israel. One example, she said, was how China did not help Israel when Yemen’s Houthi movement attacked Israeli vessels in recent weeks.

“It does not seem that China is interested in resolving the conflict and it only uses the conflict to challenge the US … and present itself as a peace-seeking alternative,” she said.

Samaan said both Israel and the US would be keen to see China play a greater role but there was no sign Beijing was willing to directly influence Iran with “coercive diplomacy”. Even with its leverage over Iran, he warned, China might not be able to change Tehran’s attitude.

“After all, Western countries have been sanctioning Iran for years and that did not lead to a shift in Tehran’s regional policies, be it in Lebanon, Gaza or Syria,” he said.

Why India supporting Israel won’t be a deal breaker in bid to lead Global South

Fan Hongda, a professor at Shanghai International Studies University’s Middle East Studies Institute, said Iran had a “very strong strategic autonomy” and it would be difficult for other countries – especially a single country such as China – to have a major influence on its decision making.

And, according to Zhou Bo, a senior fellow at the Centre for International Security and Strategy at Tsinghua University, China would not seek to “abuse” its influence over Iran and pressure Tehran as much as Israel and Washington wanted, even though it was in Beijing’s interest to prevent the conflict from spilling over.

As to whether China could potentially respond to Israel’s calls for Beijing to take a more balanced approach, Zhou said: “It is difficult to shift after seeing the appalling humanitarian disaster in Gaza.”

US Invests in Africa to Counter Chinese Influence

https://learningenglish.voanews.com/a/us-invests-in-africa-to-counter-chinese-influence/7399990.html

The United States has agreed to trade and investment deals worth $14.2 billion with African nations over the past year. The agreements are part of U.S. efforts to combat the growing influence on the continent by China.

The new agreements represent a 67 percent increase from 2022, British Robinson found. He works for the Prosper Africa trade and business program. The program connects U.S. and African businesses.

Robinson said, “The U.S. business and investment community is increasingly recognizing Africa’s… market potential.” He added that the continent is also home to the world’s youngest population which could mean new business deals and job creation.

Judd Devermont is the U.S. National Security Council senior director for African Affairs. Devermont said the U.S. has promised to invest some $55 billion over three years.

By the end of 2023, he said the U.S. has delivered more than 40 percent of this promise. And he expected the U.S. to reach over 70 percent of its goal next year. The investment has expanded trade and technology and helped with food and health security in the continent.

Last year, American President Joe Biden said the U.S. would go “all in” during a meeting with African leaders in Washington, D.C. The promise came as China was expanding its influence in the continent with new public structures, investments, loans, and other programs.

Biden also called for more African voices in world organizations. This September, with U.S. support, the African Union gained permanent membership in the G20, an organization of the world’s largest economies.

Devermont said the U.S. is also supporting a third seat for Sub-Saharan Africa on the Internal Monetary Fund leadership group. And the U.S. is calling for permanent representation of Africa at the U.N. Security Council.

Investment in conflict areas

The U.S. has had to change its investment and trade policies in countries affected by conflict.

Jonathan Pratt is the Principal Deputy Assistant Secretary in the Bureau of African Affairs in the U.S. Department of State. He said that, in Sudan, U.S. policy has been to put economic measures called sanctions in place.

In Niger, one of several countries that experienced military overthrow of government and violence, the U.S. is placing importance on peace through negotiations.

Pratt said the U.S. also supports sanctions that have been put in place by the Economic Community of West African States.

“If the country and the leadership there turns back to a democratic path, we’re willing to explore progressively lifting that freeze in assistance and potential investments," he said.

I’m Gregory Stachel.

 

Carla Van Dam Falk reported this story for Voice of America. Gregory Stachel adapted it for VOA Learning English.

_______________________________________________

 

Words in This Story

recognize – v. to accept or be aware that (something) is true or exists

potential – n. a quality that something has that can be developed to make it better

sanction – n. an action that is taken or an order that is given to force a country to obey international laws by limiting or stopping trade with that country, by not allowing economic aid for that country,

progressive – adj. happening or developing gradually over a period of time