China Quote
“We uphold the commitment to resist annexation or encroachment upon our sovereignty.”– William Lai, President of Taiwan
De/Cypher Data Dive📈
A recent study of over 550,000 teachers in China reveals significant mental health challenges for educators. From 2000 to 2022, 16.1% of teachers reported having mental health issues. When preschool teachers, who had a significantly lower rate, are excluded, the percentage increases to 17.8%. This suggests that teachers, particularly those in primary and secondary education, experience higher rates of mental health issues than other professions. (Caixin)
Quick China: Unmissable Stories 📜
Former Justice Minister Expelled From Party for Alleged Corruption
China’s former Justice Minister Tang Yijun has been expelled from the Communist Party and is facing criminal charges for alleged corruption, the country’s top graft buster said. Tang, 63, served as the Minister of Justice between April 2020 and January 2023, before he was named as head of the political advisory body of Jiangxi province. In April this year, the Central Commission for Discipline Inspection (CCDI), China’s top anti-corruption agency, announced the investigation into Tang. In a statement released on Monday, the CCDI accused him of accepting hospitality, free travel, gifts, cash and other forms of bribes over an extended period. He allegedly used his influence to secure benefits for others, assisted relatives with financial dealings, improperly interfered in market and judicial matters and failed to address his wife’s misconduct, according to the agency. Tang displayed a complete disregard for laws and regulations, treating public power as a tool for personal gain. He engaged in corrupt practices, using his official position to benefit others in business operations, company listings, promotions and case handling, while illegally accepting substantial sums of money and property, the CCDI said in the statement. (Caixin)
China wants its companies to ditch Nvidia
Nvidia’s highest-end chips are off-limits to Chinese companies due to strict export controls from the US. That hasn’t stopped developers from either buying lower-grade chips or finding the best chips in underground markets, but that may soon change. Beijing has reportedly begun urging its private sector to use Huawei’s chips instead of Nvidia’s chips. China’s government hasn’t made an official announcement on the matter — at least not yet. Analysts expect that Huawei’s newest chip could perform better than the China-specific chip currently marketed by Nvidia. Huawei’s chips are nowhere near as advanced as chips from Nvidia or AMD, but they are more advanced than the ones Chinese companies can legally buy. That all results in Huawei getting a boost in business from China’s domestic AI sector. If it can offer a decent chip for running and training AI models, and the government pressures companies to buy from them, it could be a boon for their pockets and help them develop better tech in the future. (G-Zero)
Is China Breaking Out or Breaking Bad?
With the world’s second-biggest economy in the deflationary doldrums and the government in danger of missing its growth target of about 5% this year, a buoyant stock market would provide a welcome jolt of confidence in the absence of rising incomes and property values. “Chinese equities are still not expensive despite the recent melt-up,” Bloomberg Opinion columnist Shuli Ren wrote recently. Goldman Sachs this week upgraded its call on Chinese stocks to overweight, while highlighting cheap valuations. A further 15-20% gain is possible, if the authorities deliver on their policy measures, the bank’s strategists wrote.
The extent of the help coming from on high is unclear. A government briefing last month rolling out a host of measures got the excitement started but another one this week that stopped short of offering a large degree of support disappointed investors. Yet another press conference planned for Saturday by the Ministry of Finance has spurred bets that officials will ride to the rescue. Investors and analysts expect China to deploy as much as 2 trillion yuan ($283 billion) in fresh fiscal stimulus at the briefing. (Bloomberg)
Beyond The Great Wall 🧱
Exploring News About China in Depth
Economy
China’s Golden Week Travel Surges but Spending Lags Pre-Pandemic Levels
CNA reports that during China’s Golden Week, domestic travel surged, with 765 million trips made, marking a 5.9% increase year-on-year. However, total expenditure reached 700.82 billion yuan, just a 6.3% increase. Per capita spending remained 2.09% lower than in 2019, reflecting economic caution amid concerns about income security and the property market downturn. Travellers sought cost-effective options, with some opting for free attractions and budget accommodations.
China’s Stock Euphoria Cools as Traders Reassess Stimulus Bets
Chinese stocks began Tuesday’s session with a bang — an onshore benchmark surged 11% as soon as trading resumed after a weeklong break. But the enthusiasm faded as the day progressed, with the lack of more major stimulus from a key policy meeting disappointing investors. (Bloomberg)
Internal Politics 🏛️
Former Top Legislator Wu Bangguo Dies at 84
Cao Desheng writes in China Daily that Wu Bangguo, former chairman of China’s National People’s Congress Standing Committee, passed away at 84. Wu, a prominent CPC member, played a key role in enhancing socialist democracy and China’s legal system, leading legislative reforms such as the Anti-Secession Law. His death marks a significant loss for the Party and nation, with tributes highlighting his contributions to socialist governance.
Chinese Premier Calls for Prompt Implementation of Incremental Policies
Xinhua reports that Premier Li Qiang urged quick execution of incremental policies to stabilise China’s economy, aiming to meet annual development targets. During a symposium with experts and entrepreneurs, Li stressed the need to understand economic trends, address difficulties, and improve the business environment. He highlighted the importance of formulating new policies, providing relief to struggling enterprises, and fostering market confidence amid changing economic conditions.
China And The World🌐
China’s Security Agency Vows to Boost Intelligence Sharing After Deadly Attack in Pakistan
Xinlu Liang writes in the SCMP that following a deadly attack on Chinese nationals in Karachi, the Ministry of State Security pledged to strengthen anti-terrorism intelligence cooperation. The attack, claimed by the Baloch Liberation Army, killed two Chinese workers. China urged Pakistan to enhance security measures, expressing concerns over threats to China-Pakistan Economic Corridor projects amid an unstable security environment.
Mainland China Accuses Taiwanese Leader William Lai of Escalating Hostility
Enoch Wong writes in the SCMP that Beijing condemned Taiwanese leader William Lai’s remarks questioning the People’s Republic’s claim as Taiwan’s motherland. The comments, linking the Republic of China’s older founding to Taiwanese identity, were seen as promoting separatism. China’s Taiwan Affairs Office criticised Lai’s stance as exacerbating tensions, with Beijing affirming Taiwan’s unification as a non-negotiable goal, potentially by force.
President Lai delivers 2024 National Day Address
Taiwan Government reports that President Lai Ching-te on the morning of October 10 attended the ROC’s 113th Double Tenth National Day Celebration in the plaza fronting the Presidential Office Building, and delivered an address titled “Taiwan Together for Our Shared Dream.”
British Foreign Secretary Lammy to Visit China in Bid to Reset Ties
Joe Cash and Laurie Chen report in Reuters that British Foreign Secretary David Lammy will visit China next week, aiming to reset relations and revive trade talks. The Labour government seeks less confrontational ties, focusing on economic cooperation. However, contentious issues like human rights, espionage allegations, and Chinese involvement in UK infrastructure remain unresolved. Finance Minister Rachel Reeves may also visit soon to revive the UK-China Economic and Financial Dialogue, last held in 2019.
Finland’s President to Meet Xi on State Visit to China
Reuters reports that Finnish President Alexander Stubb will visit China from October 28-31, where he will meet President Xi Jinping and other officials. Discussions will cover bilateral relations, the Russia-Ukraine war, and security concerns. The visit follows last year’s damage to the Balticconnector gas pipeline, linked to a Hong Kong-registered vessel, raising Finland’s energy security issues. An investigation is ongoing into the incident, which led to costly repairs.
Most Taiwanese Believe China Unlikely to Invade in Coming 5 Years, Poll Shows
The Straits Times reports that a poll by Taiwan’s Institute for National Defence and Security Research found 61% of Taiwanese respondents believe a Chinese invasion is “unlikely or very unlikely” in the next five years. Despite this, 67% expressed willingness to defend the island if attacked, while opinions were split on Taiwan’s military capabilities and U.S. support. Concerns about China’s military activities and propaganda persist.
Russian and Chinese Ships Conduct Joint Drills in Pacific, News Agencies Report
The Japan Times reports that Russian and Chinese warships carried out anti-submarine exercises in the northwestern Pacific as part of a joint patrol. The drills followed the Beibu/Interaction 2024 naval exercises and involved multiple combat training sessions. Russia’s Pacific Fleet deployed the destroyers Admiral Panteleyev and Admiral Tributs, while China contributed the destroyers Xining and Wuxi, the frigate Linyi, and the supply ship Taihu.
Chinese State Media Labels George Soros a ‘Terrorist’
The Daily News reports that China’s Global Times labelled billionaire George Soros a “Global Economic Terrorist” in a heated exchange over Op-Eds. The accusation, made without evidence, linked Soros to financing anti-Beijing protests in Hong Kong through jailed media owner Jimmy Lai. Soros had previously criticised BlackRock’s $1 billion investment in China, calling it a “tragic mistake” threatening U.S. national security and advocating for stricter regulations on U.S. asset managers’ investments in China.
China Hits Out at EU Brandy ‘Threat’, Signals Car Probe Days After EV Tariff Vote
Kinling Lo and Finbarr Bermingham write in the SCMP that China plans to impose anti-dumping duties of up to 39% on European brandy imports, in response to the EU’s recent decision to levy tariffs on Chinese-made electric vehicles. The Ministry of Commerce accused EU distillers of selling brandy below cost, causing harm to local industry. China is also considering tariffs on imported cars, while investigations into European dairy and pork imports continue. The EU plans to challenge these measures at the WTO.
Chinese Commerce Minister, U.S. Counterpart Hold Phone Talks
CGTN reports that China’s Commerce Minister Wang Wentao urged the U.S. to lift sanctions on Chinese enterprises during a call with U.S. Commerce Secretary Gina Raimondo. Wang highlighted the need to clarify national security boundaries in economic and trade areas to maintain global supply chain stability. He expressed concerns about U.S. semiconductor policies and restrictions on Chinese vehicles, calling for an improved business environment for Chinese companies in the U.S.
China Requests WTO Consultations Over Türkiye’s EV Tariffs
CGTN reports that China has requested consultations with Türkiye at the World Trade Organization regarding Türkiye’s 40% additional tariff on imported electric vehicles and related licensing measures. China’s Ministry of Commerce condemned the tariffs as discriminatory and a violation of WTO rules, labelling them as protectionist. China urged Türkiye to comply with WTO commitments and pledged to take measures to protect its industries’ rights and interests.
China Hacked Major U.S. Telecom Firms in Apparent Counterspy Operation
Ellen Nakashima writes in the Washington Post that Chinese hackers breached at least three major U.S. telecommunications companies, including AT&T, Verizon, and Lumen, as part of a suspected espionage effort. The operation, attributed to the hacking group Salt Typhoon, possibly aimed at uncovering Chinese targets of American surveillance. U.S. officials indicated that the breach included broader access to internet traffic and possibly lawful federal wiretap requests. The FBI and other agencies are investigating the full scope of the breach, amid rising U.S.-China tensions.
India to Build Nuclear Submarines, Buy Drones to Counter China
Sudhi Ranjan Sen writes in Bloomberg that India will build two nuclear-powered submarines and buy 31 US-made long-range drones at an estimated cost of 350 billion rupees ($4.2 billion), senior officials familiar with the matter said, helping to counter China’s military dominance in the region.
Taiwan President Lai’s 10.10 speech
Sinocism reports that Chen Binhua, spokesperson for the Taiwan Affairs Office of the State Council, said that “Lai Ching-te continued to promote the “new two-state theory” of “mutual non-subordination” in his speech, fabricating “Taiwan independence” fallacies, propagating separatist claims, and inciting hostility and confrontation across the strait. This fully demonstrates that Lai Ching-te stubbornly adheres to the “Taiwan independence” position, is full of confrontational thinking, and constantly provokes and stirs up trouble, deliberately exacerbating cross-strait tensions and seriously undermining peace and stability in the Taiwan Strait.”
Zijin’s Overseas Buying Spree Continues With Ghana Gold Mine Deal
Luo Guoping and Ding Yi writes in Caixin that Zijin Mining Group Co. Ltd. has reached a deal to buy one of the biggest gold mines in the West African country of Ghana for $1 billion in cash, as the Chinese metals major ramps up investment abroad to meet its output targets. The agreement, signed Wednesday, allows Zijin subsidiary Gold Source International Holdings Co. Ltd. to acquire a unit of U.S.-based Newmont Corp.’s entire stake in the Akyem Gold Mine project, the Chinese company said in an exchange filing.
China’s Li Qiang and Japanese PM Ishiba pledge stable ties in first meeting
Alyssa Chen writes in SCMP that Chinese Premier Li Qiang has urged the promotion of strategic and mutually beneficial relations with Japan while maintaining the stability of global supply chains, in his first meeting with the new Japanese Prime Minister Shigeru Ishiba.
Tech🧑💻 in China
China’s answer to SpaceX’s Starlink is also threatening astronomy
Jonathan O’Callaghan reports in New Scientist that China has begun construction of a mega constellation that will eventually consist of nearly 14,000 satellites, but the launch of the first 18 is already sparking concerns from astronomers about their impact on the night sky. The Qianfan mega constellation is intended to beam internet to the ground and rival the likes of SpaceX’s Starlink constellation, which already boasts more than 6000 satellites and has doubled the number of active satellites in space.
Rest of World
HEADLINES
Friday
- The 53-year-old fiction writer is a former winner of the Man Booker International Prize for her 2007 novel The Vegetarian. At the ceremony she was praised “for her intense poetic prose that confronts historical traumas and exposes the fragility of human life”. The Nobel Prize committee has awarded the literary award since 1901, and this marks the 18th time a woman has won the prize. Han Kang has won 11m krona (£810,000) which is the amount awarded to each Nobel Prize winner this year. (BBC)
- Leaders of the ASEAN Asian nations agreed on Thursday to accelerate the process of accepting East Timor as the 11th member of ASEAN, diplomats said. At the ASEAN summit in Vientiane, the capital of Laos, leaders agreed that some regulations and procedures for accepting new members could be eased – such as allowing a longer timeline for cutting import tariffs – to better optimize the bloc’s benefits for all members. (Nikkei Asia)
- The World Bank raised its growth forecast for South Asia to 6.4 percent in 2024 from an earlier estimate of 6.0 percent, citing the strength of domestic demand in India and quicker recoveries in crisis-hit countries such as Sri Lanka and Pakistan. India’s economic growth forecast for the current fiscal year, ending in March 2025, was revised to 7 percent year-on-year, up from April’s estimate of 6.6 percent, helped by a rebound in agricultural output and increased private consumption. (Arab News)
- The newly launched iPhone 16 from tech giant Apple could be banned from the Indonesian market, sparking debate among the country’s netizens. On Tuesday (Oct 8), Industry Minister Agus Gumiwang Kartasasmita confirmed that sales of the phone will not be allowed in the country until the company fulfils its investment commitments and renews its local content requirements certification or TKDN. (CNA)
- A Japanese grassroots movement of atomic bomb survivors was awarded the Nobel Peace Prize for 2024. The organization, Nihon Hidankyo, receives the prize “for its efforts to achieve a world free of nuclear weapons and for demonstrating through witness testimony that nuclear weapons must never be used again,” the Oslo-based Norwegian Nobel Committee said in a statement Friday. (Bloomberg)
Thursday
- India bade farewell on Thursday to one of its most respected corporate leaders – Ratan Tata, who expanded companies under his brand name into a global behemoth spanning multiple industries. Ahead of a state funeral, hundreds of people including corporate leaders, politicians and celebrities gathered in India’s financial hub Mumbai to pay their last respects to Tata, who died aged 86 on Wednesday. (Reuters)
- Thai consumer confidence dropped for a seventh consecutive month in September to its lowest level in 17 months, due mainly to concerns about slow economic growth and floods in parts of the country, a survey showed on Thursday (Oct 10). The consumer index of the University of the Thai Chamber of Commerce fell to 55.3 in September from 56.5 in the previous month, the university said in a statement. Confidence was hurt by flooding and also high living costs, despite government handouts for vulnerable groups, the university said. (CNA)
- Four employees of Taiwan’s Foxconn, the world’s largest iPhone assembler, have been detained in China under “quite strange” circumstances, Taiwan’s government said. Taiwan’s Mainland Affairs Council, in a statement to Reuters on Oct 10, said the four employees were detained in China’s Zhengzhou, home to a major Foxconn plant assembling Apple’s iPhones, on suspicion of the equivalent of “breach of trust”. (Strait Times)
- Bangladesh’s interim leader has refused to give a timeframe for elections following the ouster of his autocratic predecessor, saying in an interview published Tuesday that reforms are needed before polls. Nobel Peace Prize winner Muhammad Yunus was appointed the country’s “chief advisor” after the student-led uprising that toppled ex-premier Sheikh Hasina in August. The 84-year-old microfinance pioneer is helming a temporary administration, to tackle what he has called the “extremely tough” challenge of restoring democratic institutions. (France24)
Wednesday
- Israeli Minister of Defense Yoav Gallant postponed his visit to Washington, DC after it was vetoed at the last minute by Prime Minister Benjamin Netanyahu, Israeli officials said. (Axios)
- Former US president Donald Trump has had as many as seven private phone calls with Russia’s Vladimir Putin since leaving office and secretly sent the Russian president Covid-19 test machines during the height of the pandemic, Bob Woodward reported in his new book, “War”. (France 24)
- North Korea said it will permanently block its border with South Korea and boost its front-line defense posture to cope with “confrontational hysteria” by South Korean and US forces. (Arab News)
- Pakistani authorities have banned a prominent organization advocating for the rights of the Pashtun ethnic group and barred it from holding a rally in the restive northwest on charges of working against the interests of Pakistan. (AP)
Tuesday
- Philippine President Ferdinand Marcos Jr signed into law a bill that aims to develop the country’s defense industry to reduce its reliance on imported sources and create equipment tailored to its security challenges. (Arab News)
- Russia said that it still had an emergency hotline with the United States and the NATO military alliance to deflate crises as nuclear risks rise amid the gravest confrontation between Moscow and West since the depths of the Cold War. (Reuters)
- Vietnam and France have officially upgraded their relations to a “comprehensive strategic partnership”, Vietnam’s highest level, during a visit by Vietnamese President To Lam to Paris. (The Strait Times)
- Iran’s Foreign Minister Abbas Araqchi will visit Saudi Arabia and other countries in the region starting on Tuesday to discuss regional issues and work on stopping Israel’s “crimes” in Gaza and Lebanon, Iran’s ISNA news agency reported. (Business Recorder)
Monday
- Prime Minister Narendra Modi met Maldives President Mohamed Muizzu and underlined New Delhi’s position as a “close friend” of the island nation. (NDTV)
2. A massive blast that targeted a convoy of Chinese workers in Pakistan’s largest city killed two nationals, in an attack claimed by a separatist group. (Arab News)
3. Philippine President Ferdinand Marcos said his country and South Korea have upgraded bilateral ties to a strategic partnership, as he met visiting counterpart Yoon Suk Yeol for talks. (VOA)
4. Thailand’s Prime Minister Paetongtarn Shinawatra said the regional bloc ASEAN must play a key role in ending the protracted civil war in Myanmar, ahead of a summit of the leaders of the 10-member group in Laos this week. (CNA)
