China Quote✒️
“So I think the prediction of our theory for China is very straightforward, which is that mainland China doesn’t have a political system which is consistent with creating a modern, innovative, prosperous society.”
James Robinson, a University of Chicago professor, was one of the three winners of the Nobel Prize for economics this year. He shared the prize for his work with two professors at the Massachusetts Institute of Technology – Daron Acemoglu and Simon Johnson – researching global inequality.
Is OCCRP U.S.-Funded Propaganda?
Ryan Grim, Stefan Candea, and Nikolas Leontopoulos write in Drop Site News that the OCCRP, an investigative journalism network that exposed Adani Group’s alleged stock manipulation, is heavily funded by the U.S. government, with USAID contributing over 50% of its budget since 2014. The Adani group with interests ranging from ports to media has been expanding the scope where earlier big western corporations had active interests, if the OCCRP story is true it could mean media manipulation at global scale.
Critics argue its focus on U.S. adversaries, including investigations into China and Russia, aligns with American geopolitical interests. While OCCRP denies interference, questions linger about its role as a tool of U.S. soft power. Some partners have distanced themselves, citing concerns over editorial independence.
Economic Activity🏦
China’s Local Governments Race to Resolve Hidden Debt with Special Bonds
Chen Yikan writes in Yicai that Chinese local governments have issued or plan to issue CNY1.93 trillion (USD267.5 billion) in refinancing bonds, completing 97% of the 2024 quota within a month. This reflects the urgent debt pressures amid slowing fiscal revenues. Bonds issued carry longer terms and low interest rates, addressing the CNY14.3 trillion hidden debt by 2028.
Vice-Premier Urges More US Investment in Talks with Goldman Sachs President
Mia Nulimaimaiti writes in South China Morning Post that Chinese Vice-Premier He Lifeng encouraged increased US investment during a meeting with Goldman Sachs President John Waldron. Amid declining FDI, He emphasised mutual cooperation to foster healthy China-US relations. While Beijing is courting foreign investors with eased restrictions and visa policies, scepticism persists due to economic uncertainties and rising competition.
General Motors Takes $5 Billion Hit Amid China Losses
AP News reports that General Motors is taking over $5 billion in charges due to losses in its Chinese joint ventures. The charges include a $2.7 billion restructuring cost and a $2.6 billion asset write-down. Declining profits and increased competition from domestic automakers in China prompted this move. GM expects the ventures to be profitable next year but on a reduced scale.
Western Businesses in China Hold on to Hopes for Trump 2.0
Financial Times reports that some Western businesses in China are optimistic about Donald Trump’s second term, believing he is well-positioned to negotiate a favourable US-China trade deal. Experts suggest Trump’s reputation as tough on China could enable a “Nixon goes to China moment,” with potential for Chinese companies investing in the US to avoid tariffs. However, challenges such as political hostility and economic divergence between the two nations remain significant obstacles.
UK Regulator Opens Door to Shein London Listing
Financial Times reports that Nikhil Rathi, Chief Executive of the Financial Conduct Authority (FCA), indicated that the regulator prioritises disclosure over corporate behaviour in evaluating companies for listing on the London Stock Exchange. Amid pressure to block Shein’s IPO due to alleged forced labour links, Rathi emphasised the FCA’s role in assessing legal risks transparently rather than overseeing corporate ethics globally.
Inside China🐉
Xi Stresses Building Strong, Modernised Information Support Force
Xinhua reports that Chinese President Xi Jinping has called for strengthening and modernising the PLA’s information support force to advance its network information system. During an inspection, Xi highlighted the critical role of such systems in modern warfare, urging innovation in command and combat methods, enhanced security measures, and adherence to the Party’s leadership. He also emphasised combating corruption and developing skilled personnel, seeking coordinated efforts to support this strategic branch of China’s military.
Chinese Defence Minister Dong Jun at Public Meeting a Week After Graft Investigation Report
Channel News Asia reports that Chinese Defence Minister Dong Jun made a public appearance at a security forum in Shanghai, a week after a Financial Times report alleged he was under investigation for corruption. At the forum, Dong discussed maritime cooperation and China’s commitment to Gulf of Guinea security. While Chinese authorities dismissed the graft allegations as baseless, the speculation follows the expulsion of two former defence ministers for disciplinary violations earlier this year.
China’s Security Ministry Warns State Secrets Being Leaked in Common Crowdsourcing Jobs
Phoebe Zhang writes in the South China Morning Post that China’s Ministry of State Security (MSS) cautioned the public against foreign espionage agencies exploiting crowdsourcing jobs to gather sensitive data. These tactics involve tasks disguised as benign jobs, enabling data collection on strategic resources and locations. The MSS urged vigilance, particularly among individuals near sensitive sites or active on job platforms, and highlighted covert tools like IoT devices for espionage. It called for greater awareness of confidentiality to counter such threats.
China Cuts Fighter Pilot Training by One Year, On Track for Full Overhaul ‘by Early 2030s’
Amber Wang writes in The Star that China has reduced its fighter pilot training programme to three years, down from at least four, as part of a broader overhaul aimed at modernising the PLA Air Force by the early 2030s. The use of advanced JL-10 trainer jets and phased-out JL-8s has accelerated training. These reforms accompany a ramp-up in commissioning J-20 stealth fighters and the debut of J-35As, highlighting China’s efforts to match US air combat capabilities.
China and the World🌏
Nepal, China Sign Deal on Belt and Road Plan, Paving Way for Project Progress
Gopal Sharma writes in Reuters that Nepal has signed a framework agreement with China under the Belt and Road Initiative (BRI) to advance long-delayed projects. Signed during Prime Minister K.P. Sharma Oli’s visit to Beijing, the deal outlines collaboration on infrastructure, including transport corridors. Concerns persist over debt risks, as seen with Pokhara’s Chinese-funded airport, which faces operational challenges due to restricted airspace access. The agreement signals renewed momentum for Nepal-China cooperation after years of stagnation.
Iranian President, Chinese Vice Premier Meet on Bilateral Ties
CGTN reports that Iranian President Masoud Pezeshkian and Chinese Vice Premier Zhang Guoqing met in Tehran to enhance their comprehensive strategic partnership. Zhang conveyed Xi Jinping’s greetings and reaffirmed China’s support for Iran’s sovereignty and security, while Pezeshkian highlighted the strategic importance of their bilateral relationship. Both sides pledged to deepen cooperation and implement the China-Iran comprehensive cooperation plan, continuing progress outlined at the October BRICS summit.
China, Chile to Further Strengthen Bilateral Ties
Mo Jingxi writes in China Daily that Chinese Foreign Minister Wang Yi and Chilean Foreign Minister Alberto van Klaveren Stork discussed deepening economic and strategic collaboration during a meeting in Beijing. They agreed to align development strategies and enhance Belt and Road cooperation, focusing on trade, clean energy, and information communication. Chile, China’s first South American trade partner, exported over $62.5 billion worth of goods last year. Both nations aim to build on their stable relationship and recent high-level exchanges, highlighting mutual respect for core interests.
Paraguay Expels Chinese Envoy Over Taiwan ‘Interference’
VOA News reports that Paraguay expelled Chinese diplomat Xu Wei for “interference in domestic affairs” after he urged lawmakers to reconsider Paraguay’s formal ties with Taiwan in favour of recognising China. Xu, visiting for a UNESCO meeting, met opposition lawmakers and advocated for diplomatic ties with China, arguing it would benefit Paraguay economically. Paraguay, Taiwan’s sole South American ally, accused Xu of violating his visa terms and undermining its Taiwan relationship. The incident highlights escalating tensions over Taiwan’s diplomatic recognition amidst China’s growing influence in Latin America.
CPC Delegation Visits Singapore
Xinhua reports that a Communist Party of China (CPC) delegation, led by Sun Haiyan, deputy head of the CPC’s International Department, visited Singapore this week at the invitation of the People’s Action Party (PAP). The delegation engaged in discussions on governance with Singaporean leaders, including Teo Chee Hean and Vivian Balakrishnan. Both parties agreed to strengthen exchanges and dialogues to enhance bilateral relations. The delegation also visited local government departments, universities, enterprises, and communities.
Top Emitter China Tells World Court that UN Treaties Cover States’ Climate Obligations
Reuters reports that China urged the International Court of Justice (ICJ) to base its advisory opinion on existing UN treaties for addressing states’ climate obligations. This follows a push by small island states like Vanuatu, advocating for climate reparations. While non-binding, the ICJ’s opinion, expected in 2025, could influence global climate lawsuits.
Trump Picks David Perdue to Be Ambassador to China
Megan Messerly writes in Politico that Donald Trump has named former Georgia Senator David Perdue as his choice for ambassador to China. Perdue, who has extensive business experience in Asia, served on the Senate Armed Services and Foreign Relations Committees during his tenure. Trump praised Perdue as a “loyal supporter” and highlighted his expertise in global corporate restructuring. The appointment reflects Trump’s strategy to strengthen diplomatic and economic ties while maintaining regional stability.
China Bans Exports to US of Gallium, Germanium, Antimony in Response to Chip Sanctions
Elaine Kurtenbach writes in ABC News that China has banned exports of gallium, germanium, and antimony to the US following stricter US semiconductor export controls. The move targets materials critical for military and tech applications. This retaliation heightens tensions over trade and technology, with both nations citing national security concerns. China, the largest global supplier of these minerals, condemned the US restrictions, accusing them of disrupting global supply chains and inflating costs.
US Chip Sanctions Criticised for Huawei Loopholes
Mackenzie Hawkins writes in Bloomberg that Representative John Moolenaar has criticised new US chip restrictions, highlighting loopholes allowing Huawei and SMIC to access technology. While restrictions on AI memory chips and chip tools tighten, some licensing policies remain inconsistent. Democrats praised the measures for hindering China’s AI and military tech progress, but Republicans signal tougher oversight under the incoming Trump administration.
China Sanctions U.S. Defense Firms Over Taiwan Arms Sales
David Pierson writes in The New York Times that China sanctioned 13 U.S. defense firms and six executives in retaliation for a $387 million arms package for Taiwan. The sanctions, largely symbolic due to existing U.S. restrictions, aim to deter other nations from arming Taiwan. Tensions persist as President-elect Trump’s Taiwan policy remains unclear, with mixed signals on arms support and defence spending.
Philippines Accuses China of Aggressive Actions in South China Sea
BBC reports that the Philippines accused China of firing water cannons and sideswiping a government vessel near the disputed Scarborough Shoal. Footage released by Manila shows a collision and water cannon attack, which China claims was lawful. The US ambassador condemned China’s actions as dangerous. Tensions over territorial claims in the South China Sea have sharply escalated in recent years.
Chinese Crime Networks Exploit Malaysia’s Visa-Free Policy
VOA News reports rising concerns in Malaysia over its visa-free policy for Chinese nationals, following arrests linked to Chinese fraud gangs. These networks have scammed hundreds of Malaysians, with victims reportedly held in call centres in Cambodia or Myanmar. The incidents highlight vulnerabilities in Malaysia’s immigration policies.
Tech in China🖥️
China Successfully Launches New Satellite Group
Xinhua reports that China launched a new batch of satellites aboard a modified Long March 6 rocket from the Taiyuan Satellite Launch Center in Shanxi province. This group forms the third batch of the Spacesail Constellation and marks the 550th flight mission of the Long March rocket series. The satellites successfully entered their preset orbits.
ByteDance Chatbot Becomes Second Most Popular Globally
Manami Ogawa and Kohei Fujimura write in Nikkei Asia that Byte Dance’s AI chatbot, Doubao, has risen to the second-most widely used globally as China’s adoption of generative AI grows. Doubao serves diverse roles, from English tutor to romantic companion. This reflects the rapid integration of AI into daily life, with China’s companies innovating broad applications for emerging technologies.
De/Cypher Data Dive📊
China has announced a ban on the export of gallium, germanium, antimony, and other essential high-tech materials to the United States. These minerals play a vital role in the production of semiconductors, automobiles, and other advanced technologies. Given their strategic importance, these materials are classified as critical to national security.
Between 2019 and 2022, the U.S. imported more than 95% of the total rare earths it consumed. Much of it was from China.
The visualization illustrates the percentage of rare earth element (REE) imports sourced from China. Out of total USA imports of rare earth elements in 2018, 80.5% sourced from China.
Image of the Week📸
