China in Quotes
“Today’s charges are the latest illustration of the lengths affiliates of companies based in the People’s Republic of China are willing to go to steal American innovation, The theft of innovative technology and trade secrets from American companies can cost jobs and have devastating economic and national security consequences.”
FBI Director Christopher Wray on the arrest of Linwei Ding, Chinese national who stole more than 500 files from Google with confidential information on the company’s AI technology for companies in China.
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Quick China: Unmissable Stories 📜
Hong Kong CPPCC delegates must be ‘100%’ committed to supporting Article 23 security law, says top state leader on city affairs
Chinese Vice-Premier Ding Xuexiang has called for total commitment from Hong Kong members of the country’s top political advisory body to supporting the implementation of the city’s domestic national security law.
Ding, the head of the Central Leading Group on Hong Kong and Macau Affairs, also urged the city to retain its uniqueness by bolstering international ties on Wednesday during a speech lasting around one hour at a closed-door meeting with hundreds of Chinese People’s Political Consultative Conference (CPPCC) delegates in the capital.
“It is always an ongoing process to safeguard national security, and it never ends,” said CPPCC member and Hong Kong lawmaker So Cheung-wing, citing the vice-premier at the meeting. Read more: SCMP
China lays plans to beef up stable development of capital market
Wu Qing, head of China’s securities watchdog, outlined plans on Wednesday to ensure the stable growth of the world’s second-largest capital market. He emphasized the need to strengthen institutional frameworks and enhance investor protection. Analysts noted that Wu’s pragmatic approach, which combines a tough stance on illegal activities with consideration for small investors, is well-suited to market conditions. This strategy is expected to boost market confidence, stabilize expectations, and strengthen the overall investment value of China’s capital market. Read more: Global Times
EU locks horns with China’s envoy on Ukraine, as schisms on war remain
EU officials confronted Chinese special envoy Li Hui over differing stances on the Ukraine conflict during talks in Brussels. The discussions, held over two days, reportedly featured “Moscow’s talking points” from Li Hui, Beijing’s envoy to Eurasia. Despite claiming neutrality, China’s alignment with Russia is scrutinized by the US and European allies. The war, now in its third year, has led to significant casualties, estimated in the hundreds of thousands since Russia’s 2022 invasion. Read more: SCMP
Chinese national arrested and charged with stealing AI trade secrets from Google
Former Google employee Linwei Ding, a Chinese national, was arrested and charged with stealing over 500 files containing confidential AI technology information from Google. Ding, who also worked for two China-based tech companies simultaneously, faces four counts of theft of trade secrets. The Justice Department, emphasizing the protection of national security, stated it will vigorously safeguard advanced technologies developed in the U.S. from falling into unauthorized hands. “The Justice Department will not tolerate the theft of artificial intelligence and other advanced technologies that could put our national security at risk,” Attorney General Merrick Garland said in a statement.
Read the full Indictment here.
China Intensifies Push to ‘Delete America’ From Its Technology
American tech companies in China faced a significant challenge with the release of Document 79 in 2022. This Chinese government directive, part of the “Delete A” effort to remove U.S. technology, mandated state-owned companies to replace foreign software by 2027. Officials issued the sensitive document in response to U.S. chip export restrictions, requiring updates on the transition to Chinese alternatives. Read more: WSJ
China’s New Premier Is Using Fuzzy Math
At the National People’s Congress, China’s new premier, Li Qiang, announced an ambitious growth target of “around 5%” for 2024, causing investor worries. Concerns stem from doubts about meeting this target due to China’s exit from its Covid Zero policy in 2023, conflicting inflation and deflation figures, and the government’s fiscal policies falling short of expectations. The absence of a press briefing for the premier this year, along with economic targets seeming disconnected from reality, adds to investor unease about China’s economic future and its evolving economic landscape. Read more: Bloomberg
Russia says it is considering putting a nuclear power plant on the moon with China
Russia’s Roscosmos head Yuri Borisov announced plans for a moon-based nuclear power plant by 2033-2035, aiming to aid lunar settlements with energy amid solar panel limitations. This accompanies efforts to develop a nuclear-powered cargo spaceship, signaling Russia’s dedication to lunar exploration. The project may lead to joint missions with China, aligning with their goal of a lunar landing by 2030. Read more: SCMP
As Indian troops pull out, Maldives signs defence pact with China
As Indian troops were being withdrawn from the Maldives, the nation signed a defense pact with China. Maldives’s Defense Minister Mohamed Ghassan Maumoon and China’s Major General Zhang Baoqun signed an agreement for “China’s provision of military assistance gratis to the Republic of Maldives,” aiming to strengthen bilateral ties. This move came after President Mohamed Muizzu’s persistent calls for the removal of Indian troops, a promise he made during his campaign that became an official pledge. Read more: The Hindu
How Microsoft’s Bing Helps Maintain Beijing’s Great Firewall
Chinese national Linwei Ding, a former Google employee, was arrested for stealing over 500 files of confidential AI technology. Charged with four counts of trade secret theft, Ding allegedly worked for two China-based tech firms while at Google. The Justice Department, under Attorney General Merrick Garland, vows to protect U.S. national security by safeguarding advanced technologies from unauthorized access. Read more: Bloomberg
China’s Export Growth Jumps in Positive Sign for Demand
China’s exports soared by 7.1% in early 2024, surpassing expectations of 1.9% growth, resulting in a record trade surplus of $125 billion alongside a 3.5% rise in imports. Strong global demand, notably from U.S. manufacturing, drove this performance. Despite hurdles like subdued demand and geopolitical tensions, China’s trade outlook is positive. Achieving the 5% economic growth target amidst a property crisis requires sustained policy support, with officials aiming to elevate their position in the value chain to counter deflationary pressures. Read more: Bloomberg
Beyond The Great Wall 🧱
Exploring News About China in Depth
Two Sessions: China’s Financial Briefing on March 6, 2024
In a rare joint briefing by China’s top financial and economic officials on March 6, 2024, several key announcements and discussions took place regarding the country’s economic policies and market regulations. This briefing revealed China’s strategic focus on improving market stability, attracting foreign capital, and enhancing the quality and governance of listed companies amidst market challenges and trade uncertainties.
Here is a summary timeline of the event:
New Chinese Dream: Global Brands and Steady Jobs
The research conducted by Huachuang Securities’ team, involving over 100 researchers examining the economic climate in China, demonstrates a complex picture. Despite the manufacturing PMI indicating contraction at 49.1 for the fifth consecutive month, a modest improvement in non-manufacturing PMI to 51.4 points to cautious optimism among consumers and businesses.
The report underscores a trend of increasing brand penetration in China’s lower-tier markets, particularly with first-tier chain brands like Luckin Coffee gaining ground in smaller cities such as Hengyang, Hunan Province, while consumer spending remains strong in Gao’an City, Jiangxi Province, even with high prices.
In terms of employment, the data points towards a preference for public institution jobs in smaller towns. Ningyuan County sees young educators earning 3000 yuan monthly, with potential yearly earnings of 60-70 thousand yuan. College graduates in Yixing City are returning to seek civil servant positions, which offer stability. Increased online discussions about civil service exams since 2023 suggest a consistent allure of public sector jobs, reflecting a broader inclination towards job security in China’s evolving labor market. Read the translated version here: Baiguan and the original Chinese report here: Huachuang Securities’ Research
Understanding the Rise in China’s Military Expenditure
Written By De/Cypher Team
There has been a renewed interest in China’s defense spending over the last decade or so given their strong focus on increasing their military capabilities. Speculation has grown fierecer as the country took the decision to increase defense spending by 7.2%. This is the ninth consecutive year of single-digit growth, showing a consistent emphasis on military modernization and preparedness. This increase comes at a time when tensions are rising, particularly in the Taiwan Strait. Political analysts and observers believe this increased military activity is in response to Taiwan’s election of a pro-democracy presidential candidate.
The nation’s military modernization efforts are evident in recent upgrades to its warships and aircraft, particularly in the Indo-Pacific region. At a helicopter expo in Tianjin, China last September, a powerful 1,100-kilowatt turboshaft engine was on display, which is critical for developing medium and heavyweight helicopters. China has also been conducting small-scale flight tests for its J-20 stealth fighter with new WS-15 engines, with the goal of improving thrust and range. This demonstrates China’s readiness for unconventional conflict scenarios and its determination to effectively counter the U.S. military presence in the region.
Their military ambitions have become more apparent as they have broadened their scope of interest, developing closer defensive ties with Russia. The two countries’ growing ties, evidenced by robust trade and cooperation, act as a strategic counterbalance to U.S. influence in the region. This partnership not only improves China’s access to advanced military technologies, but also gives it a geopolitical advantage in the face of US-led efforts to limit its military capabilities.
However, despite these military advancements, China faces challenges. The recent purge of PLA generals due to corruption reveals weaknesses in the military establishment. This internal strife could have an impact on the effectiveness and readiness of China’s armed forces, particularly in critical areas such as the Rocket Force, which is in charge of tactical and nuclear missiles.
The international community, particularly China’s neighbors, are concerned about China’s increased defense spending and military operations. Japan has expressed serious concern over China and Russia’s growing military collaboration, citing implications for regional security. During a routine press briefing, Chief Cabinet Secretary Yoshimasa Hayashi emphasized Tokyo’s vigilance toward evolving Sino-Russian relations. The U.S. has also issued warnings about China’s assertive behavior, particularly in the South China Sea.
China’s defense spending and military developments reflect a concerted effort to modernize and strengthen its armed forces. However, internal challenges, concerns from neighboring countries, and geopolitical tensions present complex dynamics that could shape China’s military posture in the coming years.
The truth behind China’s growth façade
Written By Alex Kliment, Published in GZERO
Chinese Premier Li Qiang announced during the annual Two Sessions meeting that Beijing aimed to achieve approximately 5% economic growth in 2024. The plan also includes creating 12 million new urban jobs and maintaining inflation at around 3%. Rick Waters, managing director for China at Eurasia Group, believes Beijing will reach the 5% target, but questions remain about the shift to sustainable growth drivers such as high-tech industries. This move comes amidst increasing political sensitivity to economic data, with Beijing holding back youth unemployment figures and censoring deflation references. Additionally, the cancellation of the traditional press conference with the premier until 2027 has limited opportunities for journalists to question top government officials about budget and policy decisions, raising concerns about transparency. Read more: Gzero
News From Asia 🌏
Friday
- Google inaugurated its first Asia-Pacific cyberdefense hub in Tokyo to combat rising cyber threats. Located within its Tokyo office, the hub fosters collaboration with Japanese government bodies, businesses, and universities to devise cyberattack mitigation strategies. Engineers from various countries in the region are involved in research, demonstrating Google’s commitment to enhancing cybersecurity in Asia-Pacific. Read more: Nikkei Asia
- Kim Jong Un led drills with an artillery unit capable of hitting Seoul, coinciding with US-South Korea joint exercises. The North Korean leader emphasized the artillery’s reach, aligning with warnings against military activities. Seoul, with half of South Korea’s population, is within range of potential strikes, viewed as North Korea’s attempt to boost its image before upcoming elections. Read more: Bloomberg
- Hong Kong’s new draft national security law, featuring sentences up to life imprisonment for treason, is raising concerns among diplomats, lawyers, and businesses about potential impacts on the city’s freedoms. The Legislative Council has begun debates on the Bill, which also acknowledges Hong Kong’s freedom of expression while addressing national security risks. Read more: CNA
- A 19-year-old Sri Lankan student was arrested by the Ottawa Police Service Homicide Unit in Canada for the stabbing deaths of six people, including five members of a Sri Lankan family. Febrio De-Zoysa faces six counts of first-degree murder and one count of attempted murder. Read more: dailymirror.lk
Thursday
- Pakistan’s Supreme Court has ruled that former Prime Minister Zulfikar Ali Bhutto, who was executed 44 years ago for murder under General Zia-ul-Haq’s regime, was not given a fair trial. The court’s decision, deemed unanimous by Chief Justice Qazi Faez Isa, followed a judicial reference filed by Bhutto Zardari’s father in 2011. Read more: Reuters
- Australia and Vietnam have upgraded to a comprehensive strategic partnership, focusing on climate, energy, defense, and security. Vietnam’s “bamboo diplomacy” seeks to strengthen relations with major powers. The partnership includes an annual dialogue on critical minerals, with Vietnam having large deposits and Australia being a major producer. Read more: SCMP
- Japan is doubling the cap on its Specified Skilled Worker program in order to attract up to 820,000 skilled workers over the next five years, citing labor shortages. The move is intended to compete with countries such as Australia and South Korea. Read more: Nikkei Asia
- Malaysian PM Anwar Ibrahim warned in Australia that attempts to contain China’s rise would aggravate tensions, emphasizing the need to understand China’s perspective on its military and diplomatic growth. He advocated for cooperation among major Asia-Pacific players. Read more: Reuters
Wednesday
- US President Joe Biden has urged Hamas to agree to a Gaza cease-fire by Ramadan, emphasizing the importance of doing so due to potential threats. Despite worsening conditions, talks in Cairo continue for a truce, hostage release, and aid delivery to Gaza. Read more: France 24
- During the ASEAN summit in Melbourne, Australia’s Prime Minister emphasized maritime security and trade amid tensions in the South China Sea. The summit aims to strengthen cooperation on marine sustainability and security, as the Philippines protests Chinese naval actions. ASEAN’s joint declaration is expected to address global issues such as the Israeli-Gaza conflict and Russia’s invasion of Ukraine. Read more: Reuters
- South Korea’s healthcare crisis worsens as senior doctors resign and trainees leave internships over plans to expand medical school admissions. The government has threatened to suspend the licenses of protesting doctors, prompting accusations of a “witch-hunt” from the Korean Medical Association. Read more: SCMP
- A bill introduced by bipartisan US lawmakers has given ByteDance, the app’s owner, 165 days to divest the app or face a US ban over national security concerns. TikTok claims it violates First Amendment rights, while ByteDance claims it has not shared U.S. user data with China. Read more: Nikkei
Tuesday
- For the first time in 30 years, the Chinese premier won’t hold a press conference after the annual parliamentary sessions, marking a shift in China’s political landscape. The conference, a tradition since 1993, allowed top leaders to discuss policies and diplomatic priorities. Read more: SCMP
- Nepal’s Prime Minister Pushpa Kamal Dahal formed a new coalition and appointed three ministers from the Communist Party of Nepal (UML), the Rastriya Swatantra Party (RSP), and his own Maoist Centre party. This move marked a shift away from his previous alliance with the centrist Nepali Congress party, citing policy differences and a desire to remove “non-performing” ministers. Read more: Reuters
- Truong My Lan, a prominent Vietnamese property tycoon, faces trial in Ho Chi Minh City on Mar 5, 2024, along with 85 others, including former central bankers and SCB executives, in the country’s largest financial fraud case involving US$12.5 billion. Read more: CNA
- Cyber attackers supported by Pyongyang breached two South Korean semiconductor equipment firms, stealing blueprints and manufacturing facility information. The National Intelligence Service detected the attacks in December and February. Read more: Bloomberg
Thank you for Reading!!!
