China Quote✒️
“China’s top leaders and policymakers are considering allowing the yuan to weaken in 2025 as they brace for higher U.S. trade tariffs” Chinese Yuan devaluation, Reuters
Pakistan Requested Nuclear Weapons Assistance From China in Talks Over Strategic Port
Murtaza Hussain and Ryan Grim write in Drop Site News that Pakistan’s request for nuclear second-strike capability from China, in exchange for Gwadar Port militarisation, has stalled negotiations. China refused, citing risks of international law violations. Amid economic turmoil, strained US ties, and insurgency in Balochistan, Pakistan faces deteriorating relations with China, complicating its strategic and economic aspirations.
India’s Ambitious $6 Billion Submarine Plan Stalls Following Sea Tests
Bloomberg reports that India’s $6 billion plan to build submarines has stalled because of contractor complaints over whether proper procedures were followed during tests at sea, delaying the navy’s efforts to bolster its capabilities as China expands its presence in the Indian Ocean.
Economic Activity🏦
Xi Jinping says China will remain world’s ‘growth engine’
Cheng Leng, Joe Leahy, and Thomas Hale write in Financial Times that Xi Jinping assured global leaders China will achieve its 5% GDP growth target for 2024, reaffirming its role as a key global economic driver. Following monetary easing measures to address weak consumption and deflation, Chinese stocks rallied. Policymakers pledged proactive fiscal policies to boost domestic demand, with further announcements expected at the Central Economic Work Conference.
Chinese Premier Vows to Boost Domestic Consumption
Bloomberg reports that Chinese Premier Li Qiang pledged to enhance domestic consumption and adopt countercyclical measures to bolster the economy. At a meeting with international economic leaders, Li promised “extraordinary” policy adjustments to combat weak consumption and deflation. China’s Politburo vowed a “moderately loose” monetary policy and proactive fiscal steps for 2025, while concerns loom over Trump’s tariff threats impacting exports and global trade.
China’s Central Bank Resumes Gold Purchases After Six-Month Hiatus
The Business Times reports that the People’s Bank of China (PBOC) resumed gold purchases in November, increasing reserves to 73 million troy ounces after a six-month pause. Despite gold’s 5% price drop since October, the PBOC’s move signals confidence in high price levels and aligns with its role as the top gold buyer in 2023. The resumption follows monetary easing measures to stabilise China’s economy amidst global trade concerns.
China Bond Yields Hit Record Low as Beijing Vows ‘Vigorous’ Consumption Effort
Ryan McMorrow, Cheng Leng, and Arjun Alim write in the Financial Times that China’s bond yields fell to a record low as Xi Jinping and Communist Party leaders pledged increased borrowing and fiscal measures to boost domestic consumption. At the Central Economic Work Conference, leaders signalled policies such as interest rate cuts and expanded special bond issuance but provided limited details, leaving markets underwhelmed.
China to Roll Out Private Pension Scheme Nationwide
Cheng Si writes in China Daily that China will implement its private pension scheme nationwide starting Sunday after a two-year trial. The policy allows domestic workers covered by the basic pension system to deposit up to 12,000 yuan annually into private pension accounts, offering tax benefits and investment options. Withdrawals are permitted upon retirement, severe illness, or permanent work incapacity. Authorities are tasked with ensuring robust supervision for sustainable development.
Inside China🐉
China Customs Says Its Chief Yu Jianhua Died of ‘Sudden Illness’
Foster Wong writes in BNN Bloomberg that Yu Jianhua, China’s General Administration of Customs chief and a veteran trade negotiator, has passed away at 63 due to a sudden illness. Known for his role in international trade, Yu had held key positions, including ambassador to the WTO and trade negotiator during the US-China tariff disputes. He served as customs chief since 2022.
China Moves to Ban ‘Cigarette Cards’ Among Minors
Channel News Asia reports that Chinese authorities are cracking down on the sale and use of “cigarette cards” by minors, citing concerns about their potential to familiarise children with tobacco brands and foster smoking habits. Experts and consumer protection groups have urged stricter regulations, including school inspections and online platform crackdowns, while promoting alternative games to steer youths away from the trend.
Chinese Football Legend Li Tie Sentenced to 20 Years for Corruption
Hayley Wong writes in The Star that former Everton midfielder and Chinese national football team coach Li Tie has been sentenced to 20 years in prison for bribery and match-fixing. Convicted of accepting over 110 million yuan in bribes, Li’s case highlights rampant corruption in Chinese football. The charges stem from his tenure as coach, during which he manipulated team selection and match outcomes.
China and the World🌏
Trump Invites China’s Xi Jinping to Inauguration
Jennifer Jacobs writes in CBS News that President-elect Donald Trump has invited Chinese President Xi Jinping to his January inauguration, marking a potential first for a foreign leader at a U.S. transfer-of-power ceremony. While Xi’s response is pending, Trump’s team is also considering inviting other dignitaries, including Hungary’s Viktor Orbán. Trump continues to balance critical rhetoric against China with leader-to-leader diplomacy.
Beijing Responds to Yoon’s Spy Accusations
The Korea Times reports that China’s foreign ministry expressed being “deeply surprised and dissatisfied” after President Yoon Suk Yeol accused Chinese nationals of espionage. Yoon cited two cases involving Chinese nationals filming military sites to justify a brief martial law period. Beijing called the claims baseless, defended its nationals, and urged South Korea to ensure their safety and rights.
Xi Meets United Russia Party Chairman Medvedev
Xinhua reports that Xi Jinping met Dmitry Medvedev in Beijing, marking 75 years of Sino-Russian diplomatic relations. Xi highlighted cooperation in development, governance, and multilateral frameworks like the UN and BRICS, advocating for global stability and fairness. Medvedev conveyed Vladimir Putin’s message, praised China’s Ukraine crisis stance, and emphasised strengthening CPC-United Russia ties, youth exchanges, and long-term bilateral collaboration.
China, Vietnam Vow to Maintain High-Level Exchanges, Targeted Cooperation
CGTN reports that Chinese Foreign Minister Wang Yi and Vietnamese Deputy Prime Minister Bui Thanh Son met in Beijing to reinforce bilateral ties. The leaders emphasised strategic coordination, cross-border supply chains, and people-to-people exchanges. Marking 75 years of diplomatic relations next year, they pledged to deepen economic, cultural, and multilateral cooperation while managing differences, including in maritime issues.
China’s Wolf Warrior Lu Shaye Heads Home from France in Shadow of Controversy
Shi Jiangtao and Yuanyue Dang write in the South China Morning Post that Lu Shaye, China’s ambassador to France, is concluding his tenure amidst controversies over his aggressive “Wolf Warrior” diplomatic style. Known for provocative statements, including remarks on Ukraine and ex-Soviet states, Lu faced significant backlash during his term. Analysts view his delayed return as Beijing’s resistance to external pressures, reflecting China’s assertive foreign policy stance.
China Announces Visa Restrictions on US Personnel Over Hong Kong ‘Interference’
Reuters reports that China has imposed visa restrictions on certain U.S. personnel, accusing them of “interfering” in Hong Kong affairs. Announced by the foreign ministry, the move targets individuals alleged to have behaved improperly on Hong Kong-related issues. This measure comes amidst escalating tensions between Beijing and Washington over human rights and governance in the region.
China Expands Major Military Drills Around Taiwan
Deutsche Welle reports that Taiwan detected 53 Chinese aircraft and 19 vessels near its borders as Beijing conducts its largest maritime exercises in decades. Taiwan’s Foreign Ministry criticised China as a “troublemaker,” while Beijing accused Taipei of destabilising the Taiwan Strait. The drills, involving 90 ships, are seen as a show of force ahead of the U.S. presidential transition.
Beijing Seeks Tourist Visas to Increase Chinese Presence in Taiwan
Intelligence Online reports that the Chinese Communist Party is lobbying for tourist visas for Chinese citizens to expand their presence in Taiwan, particularly in provincial cities. Kuomintang MP Fu Kun-chi is spearheading this initiative, aligning with the CCP’s strategy to deepen ties and influence in Taiwanese society.
China Launches Antitrust Probe into Nvidia
Ryan McMorrow, Eleanor Olcott, and Tim Bradshaw write in Financial Times that China has initiated an antitrust investigation into Nvidia, citing potential violations of anti-monopoly laws and commitments tied to its $6.9 billion Mellanox acquisition. The move comes amidst deepening US-China tensions over advanced technologies like AI. Analysts view the probe as politically motivated, reflecting Beijing’s push to promote domestic AI chipmakers, including Huawei, over Nvidia. Despite restrictions, Nvidia’s sales in China remain significant, contributing 15% of its revenue last quarter.
Nvidia Expands Workforce in China Amid Antitrust Probe
Anan Ashraf writes in Benzinga that Nvidia has added 1,000 employees in China this year, increasing its workforce to nearly 4,000. The expansion focuses on research in autonomous driving and software development, aligning with rising EV and AI demand. Meanwhile, China is investigating Nvidia’s 2020 Mellanox Technologies acquisition for potential anti-monopoly violations.
Bashar Assad’s Fall Reminds Xi Jinping of a Donald Trump Bombshell
Katsuji Nazakawa writes in Nikkei Asia that the collapse of Bashar Assad’s regime has evoked memories of a 2017 episode when Donald Trump ordered airstrikes on Syria during Xi Jinping’s Mar-a-Lago visit, catching Xi off guard. With Trump’s potential return, familiar geopolitical dynamics involving Xi, Putin, and Kim Jong Un could resurface, rekindling strategic pressures on China.
U.S. Hikes Tariffs on Chinese Solar Products
Pak Yiu writes in Nikkei Asia that the U.S. has raised tariffs on Chinese solar wafers and polysilicon to 50% and tungsten products to 25%, effective January 2025. The Biden administration aims to shield domestic clean tech industries from cheap imports amidst worsening trade ties with China. The move highlights ongoing accusations against China for dumping clean energy technology.
Chinese Citizen Arrested for Allegedly Flying Drone at U.S. Space Force Base
Thomas Novelly writes in Military.com that Yinpiao Zhou, a 39-year-old Chinese citizen, was arrested at San Francisco International Airport for flying a drone over Vandenberg Space Force Base in California. Zhou allegedly took aerial photos of the base and attempted to modify the drone to bypass altitude restrictions. The incident highlights ongoing concerns about drones near U.S. military installations, coinciding with similar sightings at other bases in the U.S. and abroad.
US Offers US$10 Million Reward for Wanted Chinese Hacker
Channel News Asia reports that the United States has announced a US$10 million reward for information leading to the arrest of Guan Tianfeng, a 30-year-old Chinese hacker accused of exploiting firewalls to steal data globally. Guan, linked to Sichuan Silence Information Technology, targeted over 81,000 devices in 2020, including critical U.S. infrastructure. The company and Guan allegedly worked with Chinese government entities. The indictment includes conspiracy charges for computer and wire fraud.
Khorgos: The World’s Largest Dry Port
South China Morning Post reports that Khorgos Gateway, connecting Kazakhstan and China by rail, is poised to become the world’s largest dry port. Straddling one of the planet’s remotest regions from the ocean, it handles 6,200 TEU containers monthly, with freight expected to grow to 30 million tonnes annually. Khorgos serves as a key Belt and Road Initiative node, addressing logistical challenges like gauge differences between China and Kazakhstan’s railways, improving Eurasian trade efficiency.
UAE and China Trade to Pass $100bn This Year
Arabian Business reports that trade between the UAE and China is set to exceed $100 billion in 2024, driven by robust bilateral investments and expanding economic ties. At the “Invest in China” roadshow in Abu Dhabi, officials highlighted sectors like AI, manufacturing, and construction materials as key drivers of growth. UAE officials emphasised China’s position as the UAE’s largest trading partner, with bilateral trade reaching $74.5 billion in the first nine months of 2024.
Papua New Guinea Gains Rugby League Team in Australian Diplomatic Push
AP News reports that Australia will fund a Papua New Guinea-based rugby league team for the National Rugby League by 2028, allocating AU$600 million over a decade. The initiative aims to strengthen ties amid China’s growing influence in the South Pacific. PNG’s Prime Minister James Marape highlighted the team’s role in fostering security and people-to-people connections, complementing a bilateral security pact with Australia.
Tech in China🖥️
China’s Hypersonic Jumbo Jet Prototype Hits Mach 6 in Gobi Desert Test Flight
Stephen Chen writes in SCMP that Chinese scientists achieved a breakthrough in aviation with a hypersonic aircraft prototype reaching Mach 6.56 during a 2021 test flight, unveiled recently. The design, featuring a round fuselage and cape-shaped wings, aims to overcome traditional space constraints in hypersonic travel. This milestone could pave the way for “one-hour global travel,” though challenges in power, materials, and structure remain.
China Conducts Static Firing Test of XZY-1 Verification Rocket
CGTN reports that China successfully conducted a static firing test for the XZY-1 verification rocket at the Haiyang Oriental Aerospace Port on December 5. Developed by Beijing Jianyuan Technology Co., Ltd., the XZY-1 is China’s first medium-lift rocket with a stainless steel body, liquid oxygen-methane engines, and ocean recovery capability. The test validated its 70-tonne-class engine’s performance and the operational reliability of its rocket system.
De/Cypher Data Dive📊
According to the Liner Shipping Connectivity Index, China now has the world’s largest container ports, indicating its integration into global shipping networks. China’s shipping routes and service networks now connect major countries and regions around the world (CFR).
Image of the Week📸
