Quick China Facts:
News From Asia This Week
Where there is no attribution it is all coming from multiple sources.
Monday
Israeli ground forces were confronting Hamas fighters across the Gaza Strip, the Israeli military said on Sunday in its clearest indication yet that a planned ground offensive in the enclave’s refugee-crowded south had begun. (Reuters)
China’s military on Monday said a U.S. combat ship illegally entered waters adjacent to the Second Thomas Shoal, a disputed South China Sea atoll. (Reuters)
Nasa researchers have been given the go-ahead to study China’s moon samples, in the first collaboration of its kind between the two countries’ space agencies. US law has kept Nasa and its counterpart the China National Space Administration (CNSA) at arm’s length but, in a turn of events, they will be allowed to work together, at least on this occasion.
The president of the Dubai climate change summit, Sultan al Jaber, stated that there is no science supporting the phase-out of fossil fuels to achieve a 1.5°C target. However, he acknowledged the necessity of phasing out fossil fuels while ensuring sustainable socioeconomic development.
Despite Philippine defence undersecretary Irineo Espino’s visit to South Korea last month, progress in Manila’s submarine purchase deal is slow, hampered by Hanwha Ocean’s supply difficulties with TKMS.
Tuesday
President Vladimir Putin was shown a simulation of the “nuclear button” but declined to press it on Monday as he toured a vast exhibition of Russian achievements in what looked like a warm-up for an imminent re-election campaign. (Reuters)
Big manufacturers worldwide are struggling to chip away at inventories that accumulated during the pandemic, even with supply chains returning to normal, as economic weakness in markets like China saps demand. Inventories totaled $2.12 trillion at the end of September, up 28% from the pre-COVID level of December 2019, based on a tally of 4,353 companies with comparable QUICK-FactSet data. (Nikkei)
Worries over bedbugs are spreading in Asia’s tourism sector, just as the industry works to bring business back to pre-pandemic levels. An outbreak of bedbugs was reported in South Korea in mid-October, following infestations in European cities such as Paris and London. (Nikkei)
A rocket launched by Hamas hit an Israeli military base with nuclear missiles, causing a fire near the storage.The Israeli forces eliminated three Hamas terrorists in response to the attack. (Ground)
Wednesday
A plan to release 200 million genetically modified mosquitoes in an Indonesian region to combat dengue fever has sparked opposition from locals and experts on the island of Bali. Critics warn that the pilot study in Yogyakarta, on which the plan is based, is not robust enough to justify the release of the new species.
Facing a soaring death toll from Israel’s renewed offensive in southern Gaza, the Biden administration is trying to pressure its ally to minimize civilian deaths while stopping well short of the kind of measures that might force it to listen, such as threatening to restrict military aid.
Taiwan’s presidential election next month will be a pivotal moment in the island’s history: Its outcome could solidify the territory’s always-precarious sovereignty, plunge it into conflict with China, or set it on a trajectory toward incorporation into its larger neighbor.The front-runner in the three-horse race is Lai Ching-te of the ruling Democratic Progressive Party.
Their main opponents are Hou Yu-ih respectively, from the largest opposition party, Kuomintang (KMT). Hou is a policeman-turned-mayor, vowing to protect Taiwan, but through negotiation, consensus and compromise with China.
Former Taipei Mayor Ko Wen-je, of the upstart populist Taiwan People’s Party (TPP), are the third leg of the electoral triad, after an effort to team up with the KMT fell apart last month.
Teenagers’ mathematics and reading skills are in an unprecedented decline across dozens of countries and COVID-19 school closures are only partly to be blamed, the OECD said on Tuesday (Dec 5) in its latest survey of global learning standards.
Thursday
The US military has grounded all Osprey V-22 helicopters following a crash in which eight servicemembers died, after a preliminary investigation suggested a material failure rather than crew error. The Air Force, Navy, and Marine Corps have stopped flights of hundreds of aircraft, including the Ospreys, as the investigation into the crash continues.
China has started commercial operations at the Shidaowan nuclear reactor, a fourth-generation plant designed to improve efficiency, safety, and environmental impact. The high-temperature, gas-cooled reactor uses a modular design and can produce heat, power, and hydrogen, contributing to carbon neutrality goals.
Israel’s army has killed multiple Hamas leaders, including battalion commanders, during the war in Gaza. Prime Minister Benjamin Netanyahu stated that Israel has successfully eliminated half of Hamas’ battalion commanders.
China’s November exports unexpectedly increased by 0.5% in U.S. Dollar terms, contrary to expectations of a decline. Imports in U.S. Dollar terms fell by 0.6%, missing the forecast for a 3.3% increase.
Friday
San Francisco’s Department of Elections has implemented a policy requiring proof of Chinese candidates’ birth names or a two-year usage before allowing self-submitted Chinese names on the ballot. Candidates who don’t meet the above criteria will be given transliteration-based names, often wordy and based on Mandarin phonetics.
Lahore, Pakistan’s cultural capital, is suffering from toxic smog, causing a 50% rise in pediatric patients with respiratory issues. Hospitals are on high alert in Lahore, with beds and ventilators set aside for extra emergency cases.
EU leaders raised concerns over China’s trade imbalance, pressure on Taiwan, and support for Russia at their first in-person summit in four years. China aims to hinder or delay the derisking of economic ties with the EU, while the EU seeks a stable and constructive relationship.
China’s President Xi Jinping will visit Vietnam in December to discuss upgrading bilateral relations.The two countries have been fortifying ties with multiple visits and promotions.
Apple is for the first time allocating product development resources for the iPad to Vietnam, sources briefed on the matter said, a major step toward strengthening the Southeast Asian country’s position as an alternative manufacturing hub outside of China.
Apple is working with China’s BYD, a key iPad assembler, to move new product introduction (NPI) resources to Vietnam. NPI involves a tech company like Apple collaborating with suppliers on the design and development of new products to make sure the blueprints are doable. This is the first time Apple has shifted NPI resources to Vietnam for such a core device. (Nikkei)
Beyond The Great Wall
Exploring News About China in Depth
Analysis: The Modernisation and Expansion of China’s Navy
China’s People’s Liberation Army Navy (PLAN) is undergoing a rapid expansion and modernisation process. Between 2020 and 2040, the total number of Chinese naval ships is projected to increase by about 39% which equates to about 94 additional ships.
The majority of this expansion, with 77 out of 94 vessels, will come from sizable increases in large and small surface combatants. Large surface combatants (cruisers and destroyers) are projected to nearly double. Small surface combatants (frigates and corvettes) are expected to increase by more than one-third. Ballistic missile submarines and nuclear-powered attack submarines are each projected to more than double within the same timeframe.
Along with increasing the number of vessels, PLAN’s modernisation strategy involves a comprehensive approach including improvements in personnel quality, education, and training. Significant advancements are also being made in the areas of ship, aircraft, and weapon technologies, as well as in the more technical sphere of C4ISR, which covers command and control, communications, computers, intelligence, surveillance, and reconnaissance. These extensive modernisation efforts of the PLAN are geared towards expanding their operational reach.
Philippines says Chinese boats ‘swarming’ reef in South China Sea
Over 135 Chinese “maritime militia” vessels are accused of “swarming” Whitsun Reef in the disputed South China Sea, which the Philippines claims sovereignty over. China and Vietnam have also claimed the reef. Read more: Japan Times
Taiwan reports rare nighttime Chinese military activity nearby
Taiwan has reported unusual Chinese military activity at night, including aircraft crossing the Taiwan Strait’s sensitive median line. China’s actions coincide with Taiwan’s upcoming January elections. Read more: Reuters
The European Union (EU) and China held their 24th Summit in Beijing
Xi met with President of the European Council Charles Michel and President of the European Commission Ursula von der Leyen, and the Premier met with them for the 24th China-EU Summit. Read more: European Commission
China says Biden plan to shut it out of US battery supply chain violates WTO rules
China has condemned the Biden administration’s policy which bars investors from receiving tax breaks if they use significant materials from China or other designated “Foreign Entities of Concern.” Read more: Reuters
Final Pentagon budget bill features Taiwan, Aukus and counters to China’s influence
The final version of the US National Defence Authorization Act for fiscal year 2024 includes provisions strengthening Taiwan’s defence, emphasising Aukus alliance priorities, and countering Chinese influence, totaling $872.4 billion. Read more: South China Morning Post
Chinese FM, British foreign secretary hold phone talks on bilateral ties
Chinese Foreign Minister Wang Yi and British Foreign Secretary David Cameron held a phone conversation, discussing the importance of both countries, as permanent members of the United Nations Security Council, in maintaining international peace and stability. Read more: Xinhua
Chinese FM calls for efforts to push China-Mexico ties to new level
Chinese Foreign Minister Wang Yi expressed China’s willingness to elevate China-Mexico relations to a new level in a meeting with Mexican Foreign Minister Alicia Barcena in Beijing, focusing on a strategic and long-term perspective. Read more: CGTN
Myanmar’s junta wants China’s support. Analysts expect ‘cautious pragmatism’ from Beijing
Myanmar’s ruling junta has requested China’s support for stability, following clashes with militant groups. Analysts predict Beijing’s “cautious pragmatism,” anticipating support for regional stability without direct intervention. Read more: South China Morning Post
Nvidia ensures new chips for China are compliant with export curbs
Nvidia is working with the US government to ensure that its new chips destined for the Chinese market comply with export restrictions. The company is navigating geopolitical uncertainties that are affecting its operations. Read more: China Daily
Apple moves towards India-made iPhone batteries in push away from China
Apple is reportedly considering sourcing iPhone 16 batteries from India, as part of the company’s broader efforts to diversify its global supply chain and reduce manufacturing dependency on China. Read more: The Financial Times
China’s new visa-free policy to boost tourism, economic exchanges
China’s new visa-free entry policy for citizens of France, Germany, Italy, the Netherlands, Spain, and Malaysia aims to increase tourism and economic exchanges. The trial, which runs from December 1 to November 30 next year, allows visitors from these countries to enter China without a visa for up to 15 days. Read more: Xinhua
French Senate to celebrate overseas Chinese business elite
The president of the Ligue Universelle du Bien Public, Jean-Claude Baudry, is hosting an event on 16 December at the French Senate with the World Federation of Chinese Entrepreneurs Organisation from Macau to award medals to a small group of Chinese entrepreneurs. Read more: Intelligence Online
Xi will visit the PRC’s fraternal Socialist neighbor from December 12-13th.
Xi will visit the PRC’s fraternal Socialist neighbor from December 12-13th. Expect him to convene the Central Economic Work Conference soon after he returns. Read more: Sinocism
China to spur domestic demand, economic recovery in 2024 – state media
China’s Politburo met and the top 24 leaders of the CCP, vowed to strengthen the government’s fiscal policy to boost domestic demand, while implementing a flexible and targeted monetary policy. The meeting was chaired by President Xi Jinping, and he said the fiscal policy will be stepped up “appropriately”. Read more: Reuters
China space authorities name Elon Musk’s SpaceX an ‘unprecedented challenge’
China has named SpaceX by Elon Musk an ‘unprecedented challenge’. The Chinese government has asked for the aerospace workers to overcome complacency and work harder to keep up with the the west and especially SpaceX. Read more: South China Morning Post
‘World first’: Chinese scientists create high-power microwave weapon for small drones
Chinese scientists claim they have created a microwave source for drones that could see a complete shift in the balance of military power. Read more: South China Morning Post
China’s exports grow for first time in 6 months in relief for factories
Chinese exports have expanded, instead of curtailing, more details in the Decypher opinion below.
Decypher Opinion
China’s Export Dominance Shifts Focus to Green Tech
Read the full article here: Nikkei Asia
Despite negative perceptions of China’s economy, its export dominance remains strong, particularly in the green technology sector. While overall shipments fell in 2023, exports of lithium-ion batteries, solar panels, and electric vehicles (EVs) increased, indicating a shift towards indigenous supply chains and self-reliance. This increase in green technology exports coincides with China’s “dual circulation” strategy and President Xi Jinping’s emphasis on “self-developed, controllable” supply chains. This suggests that China is attempting to decouple itself by reducing import dependence and diversifying export markets. Despite the US-led de-risking push, China’s ability to retain market share in key regions indicates a fractured global trade landscape in the post-globalised world.
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