China Quote
“Gao Zhen, a Chinese artist who is known for his critical depictions of Mao Zedong, has been detained under a law banning the defamation of “heroes and martyrs” injuring the reputation and honour of a hero or martyr”
— Gao Zen’s wife
De/Cypher Data Dive📈
China’s leading mainland-listed steelmakers reported shrinking profits or growing losses in the first half of the year (2024) due to weakening steel demand and the resulting decline in prices. Inner Mongolia BaoTou Steel Union Co. Ltd suffered the steepest decline, with its net profit attributable to shareholders plunging 73.8% to $15.2 million in the six months through June.
In the first quarter of 2024, the combined profits of the association’s member steelmaking companies plummeted by 47.9% year-on-year to approximately 8.7 billion yuan.
Quick China: Unmissable Stories 📜
Adani Plans $10 Billion India Chip Plant With Israel’s Tower
The Adani Group plans to build a semiconductor fabrication plant with an Israeli partner, in a bid to bolster India’s chipmaking capabilities as semiconductors become a key geopolitical battleground globally. The conglomerate, led by billionaire Gautam Adani, and Israel’s Tower Semiconductor Ltd. will set up the chip manufacturing facility at Taloja on the outskirts of Mumbai at an investment of $10 billion, Devendra Fadnavis, deputy chief minister of the western Indian state of Maharashtra, said in a post on X Thursday that listed all the approved projects. The unit is expected to have a production capacity of 40,000 wafers in the first phase, and 80,000 wafers in the second, Fadnavis said in the post, without sharing any timeline for the project. The project, housed under the group’s flagship and incubator Adani Enterprises Ltd., will be built over three to five years, according to a person familiar with the planning, who asked not to be identified citing rules. The ports-to-power conglomerate will be largely fund the investment through its internal accruals and some debt, the person added. Semiconductors have grown into a crucial resource amid an escalating tech rivalry between the US and China, with many nations reviewing the risk of relying too much on imports and investing heavily in developing domestic capabilities. The Adani pact also gives Tower Semiconductor a foothold in a key emerging market, helping it move out of the shadow of its failed acquisition bid by Intel Corp. (Bloomberg)
The Pressure Behind China’s GDP Figures
Each spring, the Chinese government announces its annual GDP growth at the Great Hall of the People. As a former Beijing correspondent, I queued in line before dawn with other journalists to get the report. One year, the competition among media outlets to publish the figures first was so intense that a brawl broke out at the front of the line. Despite the fanfare, economists have long questioned the reliability of official figures, and China watchers are always on the lookout for hints about the true state of the economy. This could help explain why the stock for Pinduoduo Inc., Temu’s owner, plunged nearly 30% last week — losing more than $50 billion in market value — after PDD surprised investors with a gloomy sales outlook. If some Chinese consumers are struggling to afford even the cheapest goods, that spells trouble for any Chinese company. (Joanna Chiu, RoW)
US rights watchdog cites “a climate of fear” in Uganda oil development project
Oil activities on the shores of Uganda’s Lake Albert have triggered widespread suffering among locals facing forced displacement and other violent abuses, a U.S. climate watchdog said Monday. The report by Climate Rights International says banks and insurers should withhold further funding for an oil development project run by the China National Offshore Oil Corporation, or CNOOC. The project, one of two linked to the planned construction of a heated pipeline that would link Uganda’s emerging oil fields to a port in Tanzania, involves the construction of a central processing facility in a vast zone of shoreline that many locals can no longer access.
The report is the first of its kind to detail serious allegations against CNOOC, one of a number of partners in the project. Based on dozens of interviews, it cites forced evictions, inadequate or non-existent compensation for land and other assets, coercion and intimidation in land acquisition, loss of livelihood and sexual violence. Dozens of interviewees accused Ugandan government troops of responsibility for forced evictions, destruction of fishing boats, violence, “and creating a climate of fear,” it said. (AP)
Foreign Ministry Spokesperson Mao Ning’s Regular Press Conference on September 3, 2024
Reuters: China made a pledge at the 2021 FOCAC in Dakar to buy US$ 300 billion of African goods and we understand that that has not been entirely fulfilled. What more can China do to boost its buying from the continent? At this year’s FOCAC, how is China positioning itself to attract commitment from African economies to buy more Chinese goods?
Mao Ning: I am not sure where your numbers come from. China attaches great importance to the implementation of the outcomes of FOCAC. According to China’s Ministry of Commerce, from December 2021 to July 2024, China’s imports from Africa reached US$ 305.9 billion, hitting the targets ahead of schedule. China has been Africa’s top trading partner for 15 consecutive years. The 2024 FOCAC Beijing Summit will open soon. China will actively implement the important decisions of the third Plenary Session of the 20th CPC Central Committee, and share development opportunities created by Chinese modernization with the world. China will continue to observe the principles of sincerity, real results, amity and good faith which guide our policy toward Africa. We will continue to pursue the greater good and shared interests in our cooperation with Africa, expand institutional opening up to Africa and deepen cooperation on industrial and supply chains so as to bring the Chinese and African economies together, connect our development efforts and share our achievements together. (Ministry of Foreign Affairs)
Xi meets African Union Commission chairperson
Chinese President Xi Jinping on Tuesday met with Chairperson of the African Union (AU) Commission Moussa Faki Mahamat, who is in Beijing for the 2024 Summit of the Forum on China-Africa Cooperation (FOCAC).
Noting that the AU has been a flag guiding Africa’s unity and self-strengthening and an important platform for international cooperation, Xi said China supports the AU in playing a bigger role in the development of China-Africa friendship. Xi said he was pleased to see that the China-aided headquarters for the Africa Centers for Disease Control and Prevention had been completed and put into use, making a contribution to the health and well-being of African people.
China stands ready to pursue greater achievements in various fields in its cooperation with the AU and promote the development of the China-Africa community with a shared future, he said. China considers Africa a major priority in its diplomacy, and is willing to increase political exchanges, deepen strategic mutual trust, strengthen pragmatic cooperation, share development experience, and promote common development with Africa, Xi said.
He said China and Africa should work closely to advocate an equal and orderly multipolar world, as well as universally beneficial and inclusive economic globalization. Faki spoke highly of the outstanding leadership of China and President Xi in promoting the partnership between Africa and China and the institutional development of the FOCAC. He thanked China for its valuable assistance to Africa in fields such as infrastructure, health, energy, industry and security. (Xinhua)
Biden’s Record on China Leaves Big Problems for His Successor
US National Security Adviser Jake Sullivan paid a visit to Beijing last week, but President Joe Biden’s administration looks poised leave behind a long list of outstanding concerns that will continue to dog both parties.
Hal Brands notes that the Biden administration has steered key legislation through Congress “promoting generational investments in semiconductors and clean-energy technology, two vital sectors in the clash for economic and geopolitical power.” The current administration has also strengthened US alliances to push back against Beijing.
But that’s not to say the job is done. “The glaring problems under Biden have been the things that haven’t happened,” Hal writes. “China’s never-ending military buildup threatens to leave the US and its allies outgunned in future crises over Taiwan, the South China Sea, or other hotspots.” According to Hal, Biden has also left it to his successor to marshal a response to the threat of Beijing potentially flooding markets with heavily subsidized goods. Overall, Hal says that Biden’s strategy has the US headed in the right direction, but also left it with a long way to go. (Bloomberg)
China’s $100 Billion Short Against Dollar Enriches Hedge Funds
China’s embrace of a stealthy strategy to manage its currency is exposing the nation’s banks to billions of dollars of potential losses — and handing easy profits to investors on the other side of the trade. At the center of it all are transactions known as foreign-exchange swaps. These have quietly become a key tool for state-run Chinese banks seeking to prop up the yuan during periods of outsized selling pressure, according to people familiar with the matter, who asked not to be named discussing a sensitive subject.
By some estimates, Chinese banks have used swaps to build short positions in the dollar exceeding $100 billion since last year. That has pushed one measure of the swap market to extreme levels, creating virtually risk-free returns of about 6% as recently as July for traders who took the other side. While those returns have since moderated — and there’s a chance Chinese banks may ultimately profit if the yuan strengthens — people familiar with the trades estimate banks racked up anywhere from $5 billion to $16 billion in mark-to-market losses when the currency slumped earlier this year. (Bloomberg)
ByteDance Said to Be Raising $600 Million for Car App Dongchedi
ByteDance Ltd. is raising as much as $600 million for its car information and trading platform Dongchedi, according to people familiar with the situation. General Atlantic, HongShan, KKR & Co. and Gaorong Venturesare joint investors in the fundraising round, which values Dongchedi at close to $3 billion, the people said, asking not to be identified discussing a private matter. ByteDance, the parent of TikTok, initiated a plan to carve out Dongchedi less than a year ago, the people said. They added that Dongchedi shares the same user traffic pool as Douyin, the version of TikTok used in China. (Bloomberg)
Beyond The Great Wall 🧱
Exploring News About China in Depth
De/Cypher Lighthouse
China in the Pacific: Influence or Control?
Written by Priyanka Garodia, Geopolitical Research Analyst & Farheen, Trust and Policy Analyst
China has grown its influence across the Pacific by way of aid, trade, and investment. China provided over US$3 billion in aid between 2008 and 2020, financing more than 100 projects, sending more than 200 batches of in-kind assistance, and trainings almost 10,000 people. These investments in the Pacific region reflect its broader ambition to expand its soft power and generate influence in the area. Among the remarkable initiatives are 161 mobile phone towers in the Solomon Islands, a US$21.4 million university dormitory, and a US$53 million national stadium. China’s economic power is undeniable. Thirty percent of imports to Indo-Pacific nations came from China in 2021 while twenty percent of exports went to China, with a 40% increase in imports and 45% surge in exports since 2010. Despite attempts to diversify, by mid-2023 Australia exported 36.3% of its commodities to China.
Chinese Investment in the Pacific
Between 2022 and 2023, China significantly increased its investments in technology-related sectors in the Asia-Pacific, with a 305% rise in technology spending, amounting to over USD 7.8 billion. These investments, particularly in telecommunications infrastructure, are integral to enhancing connectivity across the Pacific islands. Projects such as Yunnan Energy Investment Company’s construction of a 200-kilometer transmission corridor from Laos to Cambodia highlight China’s role in the digital transformation of the region. This positions China not only as an economic partner but as a driver of technological modernization in the Pacific.
The dual effect of these investments cannot be overlooked. While China’s engagement provides critical infrastructure upgrades, it simultaneously increases the reliance of Pacific nations on Chinese technology and services. This dependence offers China leverage in influencing local politics and economic structures. The methods used by China reflect “sharp power” a concept that unlike traditional soft power, which focuses on attraction and cultural diplomacy, is more coercive, utilizing economic dependency and information control to shape local narratives and political decisions in ways favourable to China. China has not only successfully created economic clout in the region but has slowly created a system of reliance and dependence.
Debt as a Consequence
A major consequence of the economic penetration of China into the Pacific is debt payments to China. Among the most severely indebted countries, Tonga has one of the highest rates worldwide with yearly repayments to China surpassing 4% of GDP. At 2.6% and over 2.6% of its GDP respectively, Samoa and Vanuatu likewise have large debt payback obligations (Lowy Institute). Additionally, moderately exposed to Chinese debt are Papua New Guinea, Fiji, and the Cook Islands. These nations have to reconcile meeting urgent needs like health and climate adaptation with paying debt while natural calamity shocks increase.
Foreign Aid to Soft Power
China’s also uses foreign aid to increase its soft power strategy in the Pacific. It has provided over US$3.148 billion between 2008 and 2020. Although annual aid has declined from its peak of US$334 million in 2016 to US$188 million in 2020. China’s substantial pledges and infrastructure projects, such as those in the Solomon Islands, continue to solidify its influence. Thus, China’s soft power in the Pacific is intricately linked to its ability to employ sharp power mechanisms, which strengthen its geopolitical standing while advancing its economic and technological objectives. The table below lays out the aid that the Pacific countries receive.
Conclusion
China is on an aggressive path of influence generation. It has pursued a strategy of ensuring Chinese visibility in the global arena since 2007. It believes that the international narrative of China is biased and based on western values sphere headed by the United States. It has been pushing its soft power agenda globally including the Pacific. However, one must be cautious in using the term soft power to understand Chinese actions. Its strategy more aptly combines a use of sharp power and soft power to create influence and not persuasion among countries. It is a calculated blend of enhancing its global visibility and shaping regional power dynamics to its advantage, challenging traditional Western influence in the Pacific.
Economy
Expansion in China Services Activity Falters, Caixin PMI Shows
Qing Na writes in Caixin that China’s services activity growth slowed in August, with the Caixin China General Services Business Activity Index falling to 51.6, down from 52.1 in July. This decline reflects reduced momentum, particularly in employment, which contracted after a brief expansion in the previous month. The survey highlights ongoing challenges in the services sector, including weaker demand in industries like retail and tourism.
China-Owned Brokerages Plan Merger to Create $228 Billion Entity
Sherry Qin writes in The Wall Street Journal that Guotai Junan Securities and Haitong Securities will merge to form an entity with $228.28 billion in assets. This consolidation is part of China’s broader strategy to strengthen its financial markets. The companies will execute the merger via a share swap, creating the largest brokerage in China and surpassing Citic Securities. Regulatory approvals are pending.
China Weighs Cutting Mortgage Rates in Two Steps to Shield Banks
Bloomberg reports that China is considering a two-step cut in mortgage rates, totaling about 80 basis points, to reduce borrowing costs for homeowners while protecting banks from financial strain. The proposed plan, pending approval from top leadership, aims to stimulate household consumption amid the ongoing property market downturn. However, this move could further squeeze bank profits, which have already been pressured by low margins.
Super Typhoon Set to Halt Hong Kong Stock Market Trading
Ben Sharples and Sangmi Cha report in Bloomberg that Hong Kong is expected to cancel stock market trading on Friday due to Super Typhoon Yagi. The city’s weather bureau extended the Typhoon Signal 8 warning, affecting the $4.9 trillion stock market. If the alert is not lowered by noon, afternoon trading will also be canceled. This marks one of the final times trading halts for typhoons, as Hong Kong plans to stop this practice from September 23.
Internal Politics 🏛️
China Unveils Special Policy Document to Better Protect Migrant Children
Xinhua reports that China has introduced its first national action plan to enhance the protection of migrant children. The plan, created by 21 departments, outlines a checklist of 19 services across six areas, including education and healthcare. Local authorities are required to adapt this checklist to meet regional needs without lowering standards. A monitoring system will be implemented to support migrant children facing various challenges, ensuring their rights are safeguarded.
Rock ’n’ Roll, Internet Are Potential Western ‘Colour Revolution’ Traps: Chinese Textbook
Alcott Wei writes in the SCMP that a new Chinese college textbook on national security warns against Western influences like rock music and the internet as potential tools for “colour revolutions” targeting Chinese youth. The textbook, based on speeches by President Xi Jinping, aims to strengthen ideological control in universities by highlighting the dangers of foreign cultural infiltration and promoting vigilance against Western subversion efforts.
China Halts Foreign Adoptions, Leaving Questions About Pending Cases
CNA reports that China has ended its intercountry adoption programme, only allowing foreign adoptions of children related by blood or through marriage. This policy change leaves hundreds of pending cases in limbo, with the US seeking clarification on the impact for American families. The decision comes amid falling birth rates and follows the country’s suspension of adoptions during the COVID-19 pandemic.
Xi’s Economic Policies Might Work—Just Not for China’s Citizens
Mary Gallagher writes in World Politics Review that President Xi Jinping’s focus on boosting China’s manufacturing sector over consumer-driven growth may not benefit Chinese citizens. Xi’s policies favour technological independence and production over financial sectors and consumerism, aiming to limit economic empowerment that could challenge the Chinese Communist Party. While these strategies may enhance China’s global manufacturing position, they neglect individual economic roles, potentially leading to internal discontent and global trade tensions.
Police Officer Killed, 2 Others Wounded in Rare Shoot-out in Northeast China
Liu Zhen writes in the SCMP that a police officer was killed and two others were wounded during a shoot-out in Changchun, Jilin province. The incident began when a man entered a property management office with a knife and later seized a gun from an officer. The suspect was shot dead at the scene. This incident highlights the rarity of gun crimes in China.
China And The World🌐
Xi Says 2.8bn Chinese and Africans Can Modernize Global South Together
CK Tan writes in Nikkei Asia that Chinese President Xi Jinping emphasized solidarity with Africa at the Forum on China-Africa Cooperation in Beijing, suggesting that combined efforts of Chinese and African people could modernize the Global South. While Xi pledged to deepen cooperation, concerns persist over China’s growing influence and the asymmetrical nature of China-Africa relations. As China seeks to secure support from African nations, debt sustainability and trade imbalances remain key challenges in these partnerships.
Chinese VP Meets with Putin
Xinhua reports that Chinese Vice President Han Zheng met with Russian President Vladimir Putin in Vladivostok. Han conveyed President Xi Jinping’s greetings and highlighted the strong China-Russia relations at the 75th anniversary of their ties. He expressed China’s confidence in bilateral cooperation and support for the Eastern Economic Forum. Putin emphasised the robust state of Russia-China relations and expressed eagerness to explore further development opportunities together.
Turkey, NATO Member, Submits Formal Application to Join BRICS
Ezgi Akin writes in Al-Monitor that Turkey has formally applied to join BRICS, the China-led economic bloc. This move follows Turkish Foreign Minister Hakan Fidan’s visit to China and Russia. The application comes amidst Turkey’s growing frustration with the European Union and aims to diversify its trade options beyond Europe. While Turkey’s alignment with NATO remains unchanged, the application signals a strategic shift towards the BRICS countries.
Japan Lodges Formal Protest Over Chinese Survey Ship Entering Its Territorial Waters
Yuri Kageyama reports in Japan Today that Japan lodged a formal protest with China after a Chinese survey ship entered Japan’s territorial waters near Kagoshima Prefecture. The ship was detected early Saturday morning and monitored by Japanese military forces before leaving two hours later. This incident follows recent tensions due to increased Chinese activity in Japanese waters and airspace, raising concerns among Japanese defence officials.
China Warns Japan of Retaliation for Possible New Chip Curbs
Jenny Leonard, Mackenzie Hawkins, and Takashi Mochizuki write in Bloomberg that China has threatened severe economic retaliation against Japan if it further restricts sales and servicing of chipmaking equipment to Chinese firms. This warning complicates US-led efforts to limit China’s access to advanced technology. Concerns have arisen in Japan about potential repercussions, such as restricted access to critical minerals essential for automotive production, reflecting the high stakes in the ongoing geopolitical technology tussle.
China to Launch Anti-Dumping Probe into Canadian Canola Exports
Gloria Li, Thomas Hale, and Demetri Sevastopulo write in Financial Times that China has announced an anti-dumping investigation into Canadian canola imports following Canada’s decision to impose high tariffs on Chinese electric vehicles and steel. This move marks the latest escalation in trade tensions between the two nations, as Beijing claims significant losses for domestic manufacturers due to increased Canadian exports. China has also threatened to bring the matter to the World Trade Organization.
Fugitive Philippines Mayor Alice Guo Arrested in Indonesia, Officials Say
Rebecca Ratcliffe writes in The Guardian that Alice Guo, a former mayor in the Philippines accused of links to Chinese criminal syndicates, has been arrested in Indonesia. Guo was detained at a hotel in Tangerang after evading an arrest warrant issued by the Philippine senate. She is accused of involvement in financial scams, human trafficking, and money laundering. Guo denies the allegations, calling them “malicious accusations.” Her extradition to the Philippines remains uncertain.
Japanese Intelligence Agent Detained in Belarus
Jiji Press reports that a Japanese intelligence agent has been detained in Belarus, according to Belarusian state television. The agent is accused of gathering intelligence on Belarus’ cooperation with China’s Belt and Road Initiative and its border situation with Ukraine. Japanese Foreign Ministry officials confirmed the detention of a Japanese man in his 50s for a domestic law violation, but it is unclear if he is the reported agent. The detained individual was shown on Belarusian state TV admitting potential threats to Belarus.
Former Aide to Two New York Governors Charged as Agent of Chinese Government
Anthony Izaguirre writes in AP that Linda Sun, a former aide to New York governors Kathy Hochul and Andrew Cuomo, was charged with acting as an illegal agent of the Chinese government. Sun allegedly used her positions to advance Beijing’s agenda in exchange for financial benefits. She and her husband, Chris Hu, were arrested and have pleaded not guilty to the charges, including money laundering and visa fraud.
New Zealand Spy Report Calls Out China for Interference
Arab News reports that New Zealand’s spy agency has labelled China a “complex intelligence concern,” highlighting the country’s vulnerability to foreign interference, particularly from Beijing. The report claims China uses deceptive methods, including front organisations, to influence local communities and replace diverse views with those aligning with the Chinese government. The agency also noted other countries, including Russia, are engaged in monitoring and attempting to influence New Zealand.
China, Iran Tap AI to Influence U.S. Election, Experts Warn
Ryotaro Yamada writes in Nikkei Asia that deceptive online actors from China and Iran are leveraging artificial intelligence to influence U.S. public opinion ahead of the presidential election. These operations involve creating fake news sites and using “spamouflage” tactics to sway voters, particularly targeting divisions on topics like Middle East policy and promoting pro-Trump sentiments. Experts note that advancements in AI have made these influence campaigns more sophisticated and effective.
Chinese-Americans launch group backing Kamala Harris and Tim Walz
Bochen Han writes in SCMP that a group of US politicians and community leaders have launched ‘Chinese-Americans for Harris-Walz,’ supporting Kamala Harris and Tim Walz in the 2024 presidential election. Led by Katherine Tai, the group aims to register Chinese-American voters, raise funds, and counter disinformation. Chinese-Americans, a potential swing bloc in several key states, represent a crucial demographic for the Democratic campaign as tensions with China continue to affect the community.
Chinese Investment in Brazil’s EV and Electricity Sector Soars, Says Report
Energy Central reports that Chinese investment in Brazil surged by 33% in 2023, reaching US$1.73 billion, with the electricity sector receiving 39% of this total. Investments were particularly directed towards renewable energy, including wind, solar, and hydropower. The automotive sector also saw a 56% rise in investment, focused on electric and hybrid vehicles. Companies like BYD and Great Wall Motors expanded their operations, producing EVs for the consumer market.
Malaysia to Investigate Media Leak of Classified Diplomatic Note from China
Channel News Asia reports that Malaysia’s foreign ministry announced plans to file a police report and conduct an internal investigation following the leak of a classified diplomatic note from China. The note, which was sent to the Malaysian embassy in Beijing in February, was published by a Philippine media outlet and allegedly claims that Malaysia’s oil and gas exploration in the South China Sea infringes on China’s sovereignty. Malaysia emphasized its commitment to peaceful dispute resolution while defending its sovereign rights in the region.
Dominican Republic Wants In on CCP Plans for Latin America
Intelligence Online reports that the Dominican Republic is seeking deeper ties with China, seeing the placement of a promising student at the Chinese-American Schwarzman College at Tsinghua University as a strategic move to connect with China’s elite. The country’s ambassador to Beijing, Briunny Garabito, is actively engaging in this initiative as part of broader efforts to integrate more closely with China’s plans for Latin America.
Tech🧑💻 in China
China buys US$12 billion worth of chip-making equipment in second quarter
Coco Feng writes in SCMP that China continued to be the world’s largest and fastest-growing market for semiconductor manufacturing equipment in Q2 2024. Driven by Beijing’s push for technological self-sufficiency, sales of chip-making tools in China surged 62% year on year to over US$12 billion. The demand lifted global semiconductor equipment sales, despite contractions in other major markets.
Tencent Counts on AI Boom, Video Gaming Power to Lift Cloud Business Overseas
Iris Dengin writes in SCMP that Tencent is expanding its cloud business internationally by leveraging its strengths in AI technologies, video gaming, and social media. With increasing interest from both Chinese and foreign clients, Tencent aims to capture the growing demand for AI solutions overseas. The company is focusing on AI-generated digital humans and exploring partnerships to enhance its global presence, despite challenges posed by US restrictions on advanced GPU access.
China Launches Remote Sensing Satellites for Low-Orbit Constellation Tests
CGTN reports that China launched a new group of remote sensing satellites, Yaogan-43 02, from the Xichang Satellite Launch Center in Sichuan Province on September 3, 2024. Carried by a Long March-4B rocket, the satellites successfully entered their preset orbit. These satellites will be used to test new technologies for low-orbit constellation systems. The launch marks the 533rd mission of the Long March series rockets.
When EV Startups Shut Down, Will Their Cars Still Work?
Tianyu Fang writes in Rest of World that Chinese electric vehicle (EV) owners are facing difficulties accessing essential software updates and maintenance as EV startups go bankrupt. Companies like WM Motor, which recently filed for bankruptcy, have left customers unable to use vital features such as remote controls and in-car entertainment, raising concerns over the long-term serviceability of EVs that heavily rely on cloud-based services. The issue highlights the risks associated with “smartphones on wheels,” where functionality is contingent on continuous software support.
Huawei Looks to Upstage Apple with Product Launch Just Hours After Expected iPhone 16 Unveiling
Arjun Kharpal writes in CNBC that Huawei plans to hold a product launch event on September 10, just hours after Apple’s iPhone 16 unveiling. Huawei’s executive, Richard Yu, described the upcoming release as an “epoch-making product.” The timing of Huawei’s event highlights the intensifying competition between the two tech giants, especially in the Chinese market, where Huawei has seen a resurgence despite U.S. sanctions.
China- Africa Relations: FOCAC 2024
Written By De/Cypher Team
Chinese investment boomed across Africa during the 2000s and 2010s, peaking in 2016. The FOCAC was seen as an opportunity for African nations to grow relations with China. Likewise, China benefitted from increased global influence and leverage through the expansion of Xi’s flagship Belt and Road Initiative (BRI), but the enthusiasm seems to have dried up, reflecting a more tempered approach amid precarious economic circumstances. This does not signal a faltering in ties, instead it shows China’s evolving evolved role where they are now targeting small-scale infrastructure projects as opposed to their previous large-scale projects in the region.
In the first FOCAC hosted in person this week (4th-6th), since the start of the pandemic, African leaders were welcomed extravagantly with choreographed dancers, children waving flags, and honour guards. It was a vast display of friendship and collaboration. China pledged $51 billion in new funding, an increase of about $10 billion from the previous FOCAC in 2021. This investment would primarily focus on green technology and the creation of 1 million jobs across the continent. Xi emphasised a shift towards “small and beautiful” projects such as solar farms and digital skills training, signifying a new approach to foreign investment. Despite reduced capital flows, China remains Africa’s largest trading partner, with bilateral trade reaching a record $282 billion in 2023, motivated by Africa’s mineral exports vital for green energy.
Despite a contraction in infrastructural loans and China’s shift to smaller projects they have not fully departed from the idea of investing in large scale projects, with Xi committing to a $1 billion railway project in Nigeria last October. African leaders differ in their approach to dealing with China with some leaders like William Ruto of Kenya, seeking further investments for large infrastructure, while others aim for a more balanced relationship, urging China to open up their markets to Africa and import more finished good from the region. China’s growing influence across the world through the BRI has received significant criticism and while Xi pledged to deepen cooperation, apprehension remains about the asymmetrical nature of China-Africa relations. As China seeks to secure support from African nations, debt sustainability and trade imbalances remain key challenges in these partnerships.
China’s engagement in Africa also extends beyond economic interests. By positioning itself as a defender of the Global South, China is strengthening political ties, especially in international platforms like the United Nations. However, as critics point out, African nations must navigate internal rivalries and ensure transparency in deals to fully benefit from China’s evolving role in the continent. As the partnership moves into its next phase, African leaders have an opportunity to leverage China’s interest in building a shared future.
Rest of World
HEADLINES
Friday
- French President Emmanuel Macron appointed Michel Barnier, the EU’s former Brexit negotiator, as new Prime Minister on Thursday, according to the presidency.
- Less than a month before leaving office, Japanese Prime Minister Fumio Kishida will visit South Korea on Friday to strengthen warming ties between the traditional Asian rivals, as challenges await their cooperation after his departure.
- Republican presidential candidate Donald Trump said Thursday that if he wins the Nov. 5 election, he will establish a government efficiency commission led by billionaire supporter Elon Musk, during a wide-ranging speech in which he laid out his economic vision for the nation.
- Nick Pickles, X’s global affairs head, announced his resignation on Thursday after a decade at the social media company formerly known as Twitter.
Thursday
- Russian President Vladimir Putin suggested that China, India, and Brazil could serve as mediators in potential Ukrainian peace talks. (Moneycontrol)
- Israeli Prime Minister Benjamin Netanyahu said that Israel must keep open-ended control of Gaza’s border with Egypt, digging in on his stance on an issue that has threatened to derail cease-fire efforts. (AP)
- The first legally binding international AI treaty will be open for signature by the countries that negotiated it, including European Union members, the United States, and the United Kingdom, according to the Council of Europe human rights organisation.
- Pope Francis pledged to work with the grand imam of Southeast Asia’s largest mosque to combat religiously inspired violence and protect the environment, issuing a joint call for interfaith friendship and a common cause that is central to Francis’ visit to Indonesia. (France 24)
Wednesday
- Foreign Minister Dmytro Kuleba, one of Ukraine’s most well-known figures on the international stage, resigned Wednesday, ahead of an expected reshuffle of government leaders. (AP)
- A media company linked to six conservative influencers, including well-known personalities Tim Pool, Dave Rubin, and Benny Johnson, was allegedly secretly funded by Russian state media employees to produce English-language videos that were “often consistent” with the Kremlin’s “interest in amplifying U.S. domestic divisions in order to weaken U.S. opposition” to Russian interests, such as its war in Ukraine. (CBS)
- South Korean stocks fell sharply, led by a 9.2% plunge in SK Hynix shares after Nvidia faced fresh concerns over the sustainability of its artificial intelligence-driven rally. The Kospi index dropped by as much as 3%, marking its largest decline since early August. (Bloomberg)
- Firefighters succeeded in reducing the extent of a massive wildfire that blazed for two days and destroyed 20% of a forest in the Brazilian capital, cloaking the city in clouds of gray-white smoke, according to officials, who suspect that it may have been started by arsonists. (Reuters)
Tuesday
- Ukrainian President Volodymyr Zelenskiy on Tuesday dismissed his deputy chief of staff Rostyslav Shurma, according to a decree on the presidential website. (Reuters)
- Russian President Vladimir Putin was greeted by honour guards and red carpets in the Mongolian capital, marking his first visit to an International Criminal Court (ICC) member since the court issued an arrest warrant for him last year. (Arab News)
3. The United States seized Venezuelan President Nicolas Maduro’s plane in the Dominican Republic and flew it to Florida, citing a violation of US sanctions. (DW)
4. South Korea’s famous kimchi is falling victim to climate change, with scientists, farmers and manufacturers saying the quality and quantity of the napa cabbage that is pickled to make the ubiquitous dish is suffering due to rising temperatures. (New Strait Times)
