China in Quotes
“For Putin, the visit is important to emphasise that the strategic partnership with China remains strong, at a time when his own personal travel is restricted and his country is isolated internationally and economically,” said Elizabeth Wishnick, Senior Research Scientist, Centre For Naval Analyses
De/Cypher Data Dive📈
China’s Gini coefficient—which measures inequality—remains above 0.46, which, by international standards, indicates a high level of income inequality.
Quick China: Unmissable Stories 📜
China pledges to buy apartments and finish stalled housing projects
China announced that local governments would purchase some apartments and prioritize completing stalled housing projects in order to stabilize the country’s struggling property market. Vice Premier He Lifeng stated that these homes would be used for affordable housing, but did not provide specific timelines or funding information. Despite recent measures, new home prices fell the fastest in over nine years, reflecting the ongoing crisis. The central bank also intended to reduce mortgage interest rates and down payment requirements. The CSI 300 Real Estate index performed well, but the sector continues to face significant challenges. Read more: CNA
Putin Back in China After Just Seven Months, and first visit of his Fifth Term
Analysts expected Ukraine and the Brics summit to be among the top issues on the table during Vladimir Putin’s meetings in Beijing, as the Russian president again commended China’s peace efforts in the warring region ahead of his arrival. Putin’s two-day stopover this week – just seven months since his last visit – will include an agenda that stretches from the war in Ukraine to anticipation from the Global South bloc for an annual summit in October, which could see new joiners announced.
The topics were teased in a written interview with Chinese state news agency Xinhua, where Putin reaffirmed the “unprecedented level of strategic partnership” between the two countries despite a “difficult global situation”.
Putin’s foreign policy adviser, Yuri Ushakov, told Russian media that Putin and Chinese President Xi Jinping will sign a declaration to step up the strategic partnership and ministers from both sides will sign 11 inter-governmental documents.
The visit will include a one-on-one talk, a walk through a park, and tea and dinner together, he added. (SCMP)
China did not meddle in 2020 elections: US Intelligence Chief
China did not try to influence the outcome of the 2020 US presidential election and the US has “no information to suggest” Beijing will play a “more active role” this year, a top US intelligence official told senators on Wednesday. Testifying before the Senate Intelligence Committee, US director of national intelligence Avril Haines said that while China had a “sophisticated influence apparatus” to exploit new technologies such as generative AI, Beijing remained concerned about potential consequences “in the event their efforts are disclosed”.
Haines highlighted that China had made important advances in its “influence operation tools”, taking advantage of recent discoveries in areas such as big data analytics and deepfake technologies to generate content.
he also pointed out that although there was no evidence of the use of these tools in the United States, intelligence agents had identified “increasing confidence” in China’s influence capabilities. Haines emphasised that Chinese initiatives of this kind had already been detected in elections in Australia, Canada and Taiwan.
“Beijing seeks to promote support for China’s policy positions and perspectives, including in the context of specific elections, by portraying the US democratic model as chaotic, ineffective, unrepresentative and magnifying US societal divisions,” Haines said. (Igor Patrick, SCMP)
How will the new round of tariffs affect the US-China Trade Equation?
The Biden Administration on Tuesday announced a decision to increase tariffs on $18 billion worth of Chinese imports across strategic sectors including electric vehicles (EVs), semiconductors, lithium-ion batteries and steel. The additional tariffs could further inflame friction between the world’s two largest economies, with China’s Ministry of Commerce on the same day voicing strong opposition and vowing to “take resolute measures” to safeguard Chinese companies’ rights and interests.
Nomura’s analysts said that they expect the U.S. action to have limited impact on Chinese exporters in the short term as the targeted products account for only 4.2% of total U.S. imports from China and less than 1% of China’s total exports. Yet, there could be a spike in Chinese exports this year for products that would only face higher tariffs next year and in 2026, as traders seek to minimize the impact, they said. (Caixin)
UK summons Chinese Ambassador following allegations of foreign interference in the UK
On 14th May, upon instruction from the Foreign Secretary, the Chinese Ambassador was summoned to the Foreign, Commonwealth and Development Office.
The FCDO was unequivocal in setting out that the recent pattern of behaviour directed by China against the UK including cyberattacks, reports of espionage links and the issuing of bounties is not acceptable.
The summons followed Monday’s announcement that three people have been charged with offences under the National Security Act as part of an investigation led by officers from the Met Police’s Counter Terrorism Command. The foreign intelligence service to which the charges relate is that of the Hong Kong Special Administrative Region. (FCDO)
China Property Woes Over? Some Bullish Sentiment, Long Road Ahead
Shares of Chinese developers jumped on optimism that Beijing will provide policy support for the purchase of unsold homes from distressed builders. Their high-yield bonds also advanced.
A Bloomberg gauge of Chinese real estate stocks rose as much as 13%, leading a broader rally in Hong Kong as the market reopened after a holiday on Wednesday. Longfor Group Holdings Ltd.’s shares climbed as much as 15%. Cash-strapped China Vanke Co. surged 16%, with some of its dollar bonds poised for their biggest daily gains since November.
China is considering a proposal to have local governments buy millions of unsold homes, people familiar with the matter said on Wednesday, in what would be one of its most ambitious attempts to rescue the property market. A years long slump in home sales and prices has weighed on the economy and buyers are worried about the ability of cash-crunched developers to deliver. (Bloomberg)
China has reason to monitor US ICBM upgrades, how well US camouflages it will dictate their military relationship.
The announcement this week that President Joe Biden had ordered a Chinese-owned crypto mining facility to vacate a plot of land close to a U.S. Air Force base in Wyoming has raised questions on why China might be interested in the site.
Francis E. Warren Air Force Base is one of three U.S. bases that operate the Minuteman III intercontinental ballistic missile. Together with Malmstrom Air Force Base in Montana and Minot Air Force Base in North Dakota, the three sites hold 450 silo launchers. Due to the New START Treaty with Russia, 50 of those silos are empty and there are currently 400 missiles deployed and on full alert.
The U.S. is replacing all 400 missiles with a next-generation ICBM called the Sentinel at an estimated cost of $130 billion.
“We need to build a silo a week for the next nine years,” said Sebastien Philippe, a research scholar with Princeton University’s Program on Science and Global Security, describing the scale of the project.
Much of the modernization plan is under wraps. But it is thought to entail removing each Minuteman, updating the command and control structure, replacing the wiring and inserting a Sentinel something the Chinese armed forces would love to have the details of.
While there is no proof that it was a spying operation, analysts told Nikkei Asia that China had every reason to try to observe up close the historic modernization of land-based strategic nuclear weapons that the U.S. is about to undertake over the next decade. (Nikkei)
Beyond The Great Wall 🧱
Exploring News About China in Depth
Economy
China suffers 56% drop in foreign investments on weak domestic demand
Foreign direct investment in China fell by 56% in the first quarter of 2024, indicating global companies’ reluctance to invest in an economy with low internal demand. The net funding for foreign companies in China during this period was $10.3 billion, which was less than the same period last year. Investments have declined due to factors such as weak domestic demand, tensions with the United States, and concerns about Beijing’s revised anti-espionage law. Read more: Nikkei
Nearly 900b yuan invested in building key ecological functional zones
China has invested nearly 900 billion yuan in transfer payments for the conservation of water sources, biodiversity, and other aspects in national key ecological functional areas (NKEFAs), which cover 810 counties and approximately 4.84 million square kilometers, or 50.4 percent of the country’s total land area. NKEFAs are critical ecological barriers, with the government implementing transfer payment policies since 2008 and enacting numerous management measures with stringent evaluation mechanisms. Read more: CTGN
Tencent’s Revenue Beat Estimates After WeChat Lifts Ad Growth
Tencent’s revenue for the first quarter of 2024 surpassed expectations, increasing by 6% to 159.5 billion yuan ($22 billion), driven by WeChat’s robust ad and gaming growth despite China’s economic struggles. Net income also exceeded forecasts, reaching 41.89 billion yuan compared to the projected 34.5 billion yuan. WeChat’s enhanced monetization in advertising, e-commerce, and in-game purchases helped counteract weaknesses in other segments, allowing Tencent to continue exploring opportunities in gaming and generative AI. Tencent’s shares have risen about 30% this year, supported by an expanded stock buyback program. Read more: Bloomberg
China’s $4 Billion Lychee Harvest Devastated by Extreme Weather
Extreme weather devastated China’s lychee harvest, reducing it to less than half of last year’s 3.1 million tons, primarily in Guangdong province, due to an unusually warm winter and heavy spring rains. This resulted in a significant price increase for lychees, affecting both domestic consumption and exports. Prolonged rains also threatened other crops such as rapeseed and rice, disrupting agricultural logistics and indicating larger climatic challenges for Chinese agriculture. Read more: Bloomberg
Internal Politics 🏛️
Multiple regions across China introduce incentives to encourage women to have more babies
Several regions across China are implementing incentives to encourage families to have more children while also alleviating the financial burdens associated with raising children. Initiatives include one-time subsidies of up to 30,000 yuan for second and third children in specific areas, such as Bangjiangdong village in Guangdong Province. Guangdong, known for its economic strength, has experienced high birth rates and implemented a variety of family-supportive measures, including increased public kindergarten spots and housing fund loans. Wang Peian, a former official, proposes comprehensive childbirth policies, predicting a slight increase in births in 2024 due to factors such as the Year of the Dragon and improved fertility policies during the COVID-19 pandemic phase-out. Read more: Global Times
State security authorities disclose data collection by spies, warning of threat to ecological security
China’s Ministry of State Security has revealed cases of ecological security violations, warning against foreign NGOs or foundations illegally gathering sensitive geographic, meteorological, and biological data under the guise of research projects. These actions jeopardize national security and interests, as such information is critical to ecological and biological security. The ministry also highlighted risks in China’s digitalization efforts, emphasising the importance of protecting sensitive information in the environmental sector. Read more: Global Times
China And The World🌐
China’s Ukraine point man closes Middle East diplomacy trip marked by call to ‘cool down the situation’
Li Hui, China’s special envoy for Eurasian affairs, has completed a Middle East tour promoting restraint and dialogue to defuse tensions in the Ukraine conflict. He met with officials from Turkey, Egypt, Saudi Arabia, and the United Arab Emirates to encourage international support for a cease-fire and peace talks. Concurrently, China pledged to increase trade with Russia in energy and other sectors despite Western sanctions, with French President Emmanuel Macron highlighting China’s pledge not to provide military aid to Russia. Read more: SCMP
Chinese firms facing EU probe exit from Romanian solar project
The European Union announced the conclusion of investigations into Chinese companies bidding for a Romanian solar park, after they withdrew from the tender. The companies, which included a German unit of LONGi Green Energy Technology and Shanghai Electric subsidiaries, withdrew amid investigations into the EU’s foreign subsidies regulation. This is the second withdrawal in response to EU inquiries into state-funded company bids. LONGi stated its support for Europe’s climate goals, while the China Chamber of Commerce in the EU criticized the EU for selective information disclosure and enforcement. Read more: Nikkei
German carmakers want to compete with China but it must be a ‘fair fight’: envoy Patricia Flor
German automakers want to compete fairly with China, emphasizing that a lack of a level playing field stifles healthy competition and innovation, according to German ambassador Patricia Flor. In an interview following Chancellor Olaf Scholz’s visit to China, Flor emphasized the importance of direct discussions between leaders, despite disagreements on issues such as Ukraine and the Middle East. She stressed Germany’s strategy of continued cooperation with China while reducing critical dependencies. Read more: SCMP
Biden Accuses China of ‘Cheating’ on Trade, Imposes New Tariffs
President Joe Biden imposed new tariffs on Chinese imports, targeting semiconductors, batteries, solar cells, and critical minerals, affecting around $18 billion in annual imports. Biden justified the measures as necessary to protect U.S. industries from unfair Chinese trade practices like dumping under-priced goods. The tariff increases, part of Biden’s broader strategy to bolster domestic manufacturing, will be staggered from 2024 to 2026. China’s government condemned the tariffs and vowed to take countermeasures. Read more: Bloomberg
China, US to hold talks on AI governance
China and the United States will hold their first intergovernmental dialogue on artificial intelligence (AI) in Geneva, Switzerland, to discuss AI risks, global governance, and mutual concerns, following their leaders’ agreement in San Francisco. This dialogue will address issues such as the illegal use of AI in weapons, privacy violations, and the spread of false information. The meeting comes amid US restrictions on AI-related exports to China. Read more: Global Times
China’s Cosco Shipping Defends Exclusive Rights to Operate Peru’s Chancay Port
Peru’s government aimed to revoke a deal granting Cosco Shipping Ports exclusive rights to operate the new Chancay Port terminal, but Cosco stated it had met all procedural requirements. The National Port Authority requested judicial annulment of the deal, claiming it was an administrative error. Cosco expanded its investment in the port to $3.5 billion and secured exclusive rights to seven port services, including controversial water diversion and tug services. Although Cosco sought negotiations with Peru’s Ministry of Economy and Finance, the ministry had not yet responded. Cosco remained confident in retaining its exclusive rights. Read more: Caixin Global
Chinese embassy voices opposition to U.S. using issue of illegal immigration to smear China
The Chinese Embassy in the United States expressed strong opposition to the United States’ use of illegal immigration to criticize China. The embassy spokesperson emphasized that China consistently opposes illegal immigration and actively combats smuggling and related crimes. The spokesperson emphasized China’s successful law enforcement efforts and ongoing international cooperation to combat cross-border smuggling. They called for genuine US collaboration on illegal immigrant repatriation and urged the US to address China’s concerns in order to foster a cooperative environment. Read more: CGTN
Lidar maker Hesai sues U.S. government, denies link to China’s military
Hesai Group, a China-based lidar sensor manufacturer, has sued the United States government for including it on a list of companies allegedly linked to Beijing’s military. In January, the US Department of Defense added Hesai to this list, warning US entities about the risks of doing business with such companies. Hesai denied any influence or control from Chinese military entities, claiming significant ownership by non-Chinese shareholders. The company claimed that this listing caused significant reputational damage, a drop in stock price, and lost business opportunities, and it is seeking removal from the list through a lawsuit filed in a United States district court. Read more: Nikkei
From Atom to Alternatives: Taiwan’s Nuclear Energy Dilemma
Written By De/Cypher Team
Introduction: Taiwan’s energy landscape is at a critical juncture, requiring decisive action. The use of nuclear power necessitates a cautious approach and implementation, as Taiwanese leaders have long struggled with how to manage public sentiment while addressing the far-reaching implications for energy security, economic stability, and environmental sustainability.
Historical Context: Taiwan’s nuclear energy program dates back to the 1970s, when the government pursued both civilian nuclear power and nuclear weapon development. However, geopolitical tensions, particularly with mainland China, resulted in the abandonment of nuclear weapons ambitions and a shift toward peaceful nuclear energy. Nuclear power plants have become an important part of Taiwan’s energy mix, accounting for a significant portion of the country’s total electricity generation.
In the 1950s, tensions in the Taiwan Strait between the People’s Republic of China (PRC) and the Republic of China (ROC) erupted, resulting in armed conflicts over strategic islands. The US involvement in the region, particularly its support for the ROC and its nuclear energy program, influenced Taiwan’s nuclear trajectory. Despite safety concerns and public opposition, nuclear power has been a pillar of Taiwan’s energy policy for decades.
Current Challenges: Taiwan currently faces a slew of challenges in its nuclear energy sector. The government, led by President Tsai Ing-wen, has pledged to phase out nuclear power by 2025, citing safety concerns and a commitment to renewable energy. However, this transition will present significant challenges, including energy security risks, economic implications, and environmental concerns.
Taiwan’s heavy reliance on imported energy, combined with rising power consumption and grid instability, emphasizes the importance of addressing energy security issues. With natural gas reserves lasting only two weeks, the country must look into alternative energy sources to prevent supply disruptions and maintain stable societal operations. Recent tabletop exercises have highlighted the fragility of Taiwan’s energy supply, emphasizing the importance of diversifying energy sources and improving resilience.
Future Ramifications: The future ramifications of Taiwan’s nuclear energy policies are multifaceted. As the country works to transition to renewable energy, questions arise about the feasibility of achieving energy security and economic stability without nuclear power. The potential loss of reliable nuclear energy sources could exacerbate grid instability, raise energy costs, and weaken Taiwan’s competitiveness in the global manufacturing sector.
Geopolitical dynamics, particularly tensions with mainland China, also exacerbate Taiwan’s energy situation. The decision to phase out nuclear power has implications for Taiwan’s strategic position in the region, as geopolitical rivals keep a close eye on developments in the energy sector. Balancing energy security imperatives with environmental sustainability goals poses a delicate policy challenge for Taiwan’s leaders. Policymakers must carefully consider the trade-offs and chart a path that ensures the country’s energy security, sustainability, and resilience.
News From Asia 🌏
Friday
- France sent more security forces to New Caledonia after declaring a state of emergency in response to violent protests against new voting rules. Read more: France 24
- Kim Yo Jong, the sister of North Korean leader Kim Jong Un, denied allegations that North Korea was exporting weapons to Russia, calling them “absurd.” Read more: CNA
- The US Department of Justice revealed that North Korea infiltrated hundreds of American companies by hiring sham IT workers and using this scheme to fund its nuclear weapons program. Read more: Bloomberg Law
- Japan and the United States have signed an agreement to co-develop the Glide Phase Interceptor (GPI) to counter hypersonic missiles by the 2030s. Read more: The Japan Times
Thursday
- Indonesian authorities used cloud seeding to prevent further rainfall following devastating floods and landslides on Sumatra Island that resulted in at least 67 deaths and 20 people missing. Triggered by monsoon rains, the landslides brought mud and cold lava from Mount Marapi, causing rivers to overflow and affecting several districts in West Sumatra. Read more: Arab News
- Meta Platforms restored Facebook posts by Malaysian media about Prime Minister Anwar Ibrahim’s meeting with Hamas leader Ismail Haniyeh, stating that the removals were incorrect. The Malaysian government had complained about the removals, warning of potential legal action against Meta if pro-Palestinian content was blocked. Read more: The Strait Times
- Myanmar workers have become one of the fastest-growing groups of foreign workers in Japan, driven by the need to escape conflict and seek better opportunities. Japan’s ageing society has necessitated the recruitment of more foreign workers, including those from Myanmar who now exceed 70,000. Read more: CNA
- Qatar’s Energy Minister Saad Al-Kaabi announced that QatarEnergy had secured sales of 25 million tonnes of liquefied natural gas (LNG) in the past year and expects to sign more long-term supply deals in 2024. Read more: Middle East Monitor
Wednesday
- Malaysia’s Prime Minister, Anwar Ibrahim, met with a Hamas delegation during his visit to Qatar, demonstrating his support for the organization. Anwar thanked Hamas for agreeing to release hostages and accept an Arab-brokered peace plan. Read more: Bloomberg
- According to confidential UN sanctions monitors’ findings, North Korea laundered $147.5 million through the virtual currency platform Tornado Cash in March 2024. The funds were stolen from a cryptocurrency exchange last year. Read more: Reuters
- A rail transit cargo from Russia bound for India arrived in Iran via the Incheh-Boroun border crossing. The cargo, carried by a Russian transit train, consists of 31 containers that will be transported to Bandar Abbas port in southern Iran via the Iranian section of the International North-South Transport Corridor (INSTC) before being shipped to India. Read more: Tehran Times
- Uber has announced plans to buy Delivery Hero’s Foodpanda delivery business in Taiwan for US$950 million. The all-cash acquisition is expected to be completed in the first half of 2025, subject to regulatory approval. Read more: CNA
Tuesday
- Hong Kong’s leader, John Lee, demanded full information from British authorities after three men were arrested, including Bill Yuen, a manager at the Hong Kong Economic and Trade Office in London. These men were charged with assisting Hong Kong’s foreign intelligence service under Britain’s National Security Act. Read more: Al Arabiya
- India and Iran have signed a 10-year contract worth $370 million to develop and operate the Chabahar port. This agreement, between Indian Ports Global Limited (IPGL) and Iran’s Port & Maritime Organization, aims to improve trade routes to Afghanistan and Central Asia while bypassing Pakistani ports. Read more: Nikkei
- Singaporean Prime Minister Lee Hsien Loong submitted his resignation to President Tharman Shanmugaratnam on May 13, 2024, announcing that he and his government would resign on Wednesday. Lee recommended that Lawrence Wong form the next government. President Shanmugaratnam accepted Lee’s resignation and appointed Wong as new Prime Minister. Read more: CTGN
- President Yoon Suk Yeol announced plans to establish a senior presidential secretary position focused on addressing South Korea’s low birth rate. The move comes as South Korea’s total fertility rate falls to a record low of 0.72 in 2023, well below the replacement level of 2.1. Read more: Yonhap
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