“Xi Meets U.S. CEOs, TikTok Briefing Stuns Senators, China Engages Middle East”

China in Quotes

“It would be quite easy for China to continue to grow at 5% to 6% a year for another 20 years, but it won’t happen if things don’t get done. A slowdown would be a result of policy errors” 

— Martin Wolf, Chief Economics Commentator, FT

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De/Cypher Data Dive📈

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Chinese State Security Service Goes Legal, Interprets the Cybersecurity Law as tensions with the USA over critical data resources loom.

Article 14 of the “Cybersecurity Law” allows for the reporting of cybersecurity threats, while Articles 28 and 69 emphasize individuals’ and organizations’ responsibilities to protect national security. Network operators are legally required to assist public and national security organs. Failure to comply can result in fines ranging from 50,000 to 500,000 yuan, with managers facing fines of ten thousand to one hundred thousand yuan for serious noncompliance. Read more: Sinocism

Senators get “shocking” look at TikTok’s spy potential

Senators expressed deep concerns about TikTok after a classified briefing on March 20, urging action on the House bill to force a sale or ban the Chinese-owned platform in the U.S. Senate Intelligence Committee Chair Mark Warner highlighted the urgency, citing the House’s unanimous approval of the bill post-briefing. Senate Commerce Committee Chair Maria Cantwell, however, was more reserved, mentioning interest in a hearing despite prior disagreements with the House bill. Read more: Axios

How has China redefined a key energy target? What it means for the goal it has set for itself with respect to reducing emissions? 

When the National Bureau of Statistics released China’s key economic and social data for 2023 at the end of last month, an apparent technicality had even greater significance than the numbers themselves. Yet it went almost completely unnoticed. The bureau said energy consumption had grown faster than GDP (gross domestic product), but that energy intensity had fallen by 0.5%. This seeming paradox is due to the government recently having changed the meaning of “energy intensity” to include only fossil-fuel consumption, whilst excluding renewable energy and nuclear power. Reducing energy intensity is central to the targets in China’s five-year economic plan and international climate commitments. Shifting the focus of energy consumption control from energy intensity to “fossil fuel intensity” could be seen as progress towards controlling carbon emissions. However, the way the change was implemented – redefining the meaning of energy intensity without adjusting the numerical target – reflects a lower level of ambition, as it allows higher emissions under the target. During and after its zero-Covid policy, China’s economic growth was driven by energy-intensive industrial sectors. This has caused energy consumption and CO2 emissions to grow at a much faster rate than in the preceding five years. Improvements in energy and carbon intensity have thus slowed down, leading to a shortfall against the intensity targets China has pledged to achieve by 2025. Read more: China Dialogue

Two scholars are named to China’s Central Bank As Policy Advisers

China’s central bank has named two prominent economists as members of its monetary policy committee, which advises on policy decisions. Huang Yiping, dean of the National School of Development at Peking University in Beijing, and Huang Haizhou, a professor at Tsinghua University who’s also managing director at investment bank China International Capital Corp Ltd., are listed as members of the committee in a statement released by the People’s Bank of China Tuesday. They replaced Cai Fang, who specializes in labor economics and became a member in 2021, and Liu Shijin, a former deputy director of the Development Research Center of the State Council, a state think tank. Liu had been on the committee since 2018. Wang Yiming, also a former deputy director of that think tank who was named a member in 2021, stays on. Read more: Bloomberg

Xi-Putin Honeymoon at risk because of Chinese Farmers?

Despite its long history, Xi Jinping and Vladimir Putin’s honeymoon is still going strong. To show that, the Chinese president was quick to send a congratulatory message to his Russian counterpart after Putin secured his fifth term over the weekend. But the leaders’ cozy relationship might turn rocky in the years to come. Taken together with the lessons of history, the dynamic changes happening in Russia’s far eastern regions bordering China hint at potential pitfalls Russia could experience. A scholar of international political and economic affairs from a country that shares borders with China and Russia outlines the situation: “Putin’s great ambition of occupying Ukraine is closely related to the histories of the Qing dynasty era and the Russian Empire. What is now at stake is the future of [Russia’s] Primorsky Krai in the Far East.” Primorsky Krai is located northeast of North Korea and shares a border with China. The port city of Vladivostok is on its southern coast. 

Recently, droves of Chinese farmers have been showing up in the region looking for arable land, engaging in large-scale mechanized agriculture, and harvesting soybeans and other crops to export to China. The trend emerged in line with China’s economic growth as demand for food exploded.

Under Xi Jinping, border crossings have surged, with Chinese farmers becoming key economic players despite Russians retaining nominal land ownership. Initially welcomed as a solution to depopulation and labor shortages, these migrants now evoke concern among Russians about a potential shift towards Chinese control of agricultural land. Read more: Nikkei

China’s Xi Jinping to Meet U.S. CEOs in Beijing Next Week

Chinese President Xi Jinping will meet with business leaders from the United States in Beijing following a forum, with the goal of attracting American firms amid capital concerns. Executives, including Chubb CEO Evan Greenberg, will talk about economic growth and risks. The meeting follows a previous dinner in November 2023, with hopes for stable US-China relations despite tensions. Despite economic uncertainty, Beijing seeks to engage American corporations. Read more: WSJ

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China’s strict national security laws🧑‍⚖️ are fueling TikTok sale

Summarized by De/Cypher Team, Published in Axios

China’s strict national security laws are driving the push for TikTok’s sale, as Capitol Hill considers banning the app despite FBI warnings on potential risks. Concerns focus on TikTok’s data privacy issues, seen as exacerbated by its Chinese government connections. The US intelligence community highlights China’s cyber threat, suggesting that limitations on TikTok’s data collection might not address Beijing’s broader espionage risks. ByteDance, TikTok’s parent company in Beijing, faces scrutiny over regulations allowing potential access to user data. This follows a pattern seen with other Chinese tech firms like Kunlun Tech and a Zoom executive, indicating broader US concerns over national security and data privacy. Despite these concerns, TikTok recently informed its employees of no plans to change its approach to data privacy and national security. Read more: Axios

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China’s Ambitious Plan for National Computing Network to Narrow Tech Gap

Summarized by De/Cypher Team, Published in SCMP

China aims to narrow its technology gap with the US through a fully integrated national computing network, emphasizing computing power as crucial for global competitiveness. The National Data Administration (NDA) plans to increase China’s computing capacity by half by 2025, building eight national computing hubs and ten data center clusters under the project “Eastern Data and Western Computing.” This initiative, launched in 2022, seeks to attract approximately 400 billion yuan in annual investment and address regional digital resource disparities between China’s prosperous east and energy-rich west. Read more: SCMP

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North Korean missiles🚀 developed with foreign help, Nikkei finds

Summarized by De/Cypher Team, Published in Nikkei Asia

A Nikkei investigation found suspicions of North Korea using joint research with foreign nations to advance missile and military capabilities. Over 110 research papers were flagged for potential U.N. sanctions violations, with 80% co-authored by North Korean and Chinese researchers. Conducted from December 2016 to September 2023, the study involved nine experts, revealing a significant portion of papers involved Chinese researchers, often with Chinese government funding, raising concerns of technology transfer to North Korea. Read more: Nikkei Asia

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U.S. seeks to revive idled shipyards with help of Japan, South Korea

Summarized by De/Cypher Team, Published in Nikkei Asia

The United States aims to revive closed shipyards with Asian capital to compete with China’s naval construction. Secretary of the Navy Carlos Del Toro visited South Korea and Japan, proposing partnerships to reopen US shipyards. Japanese companies like Mitsubishi are considering investments in US facilities. Del Toro also visited Hyundai Heavy Industries and Hanwha Ocean shipyards in South Korea, which showed interest in establishing US subsidiaries. Former US shipyards will be repurposed for warships and commercial vessels, addressing the Navy’s smaller fleet size compared to China’s expanding force. Read more: Nikkei Asia

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Nepal political shakeup thrusts Kathmandu into India-China rivalry

Summarized by De/Cypher Team, Published in Nikkei Asia

Nepal’s recent political changes are reshaping its ties with India and China amid a backdrop of all parties in Nepal adopting neoliberal capitalist policies. PM Pushpa Kamal Dahal’s pivot towards China, forming an alliance with KP Oli, marks a shift from its India-leaning stance, fueling speculation on deepening China-India rivalry in South Asia. Chinese Ambassador Chen Song’s congratulations to Deputy PM Shrestha hint at Beijing’s involvement, as India makes gains in neighbouring countries. This reflects a broader trend of nations in the region balancing between India and China for their interests. Despite Nepal’s alignment with China, its reliance on India for economy, infrastructure, and security underscores the need for a balanced foreign policy approach. Read more: Nikkei Asia

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China and its Engagement with the Middle East

Written By De/Cypher Team

The Middle East is a region of high geostrategic interest in today’s world. Whether it be Russia, the USA or China, the availability of oil and energy resources makes it an attractive destination for economic investment. However, the region’s security and political interactions foreshadow many of its economic relationships. Chinese interest in the MENA region has seen a sharp increase in recent times. In response to considerable investments in construction, infrastructure development and the labour/service industry, most of China’s oil and energy needs are met through imports from the Middle East. These relations have shifted from traditional fossil fuel-based imports to cleaner – renewable energy resources keeping in view the climate crisis. 

The Belt and Road Initiative (BRI) has emerged as China’s foremost tool for strategic engagement internationally and sees major involvement in the region with over 19 countries being involved. China has signed 5 Comprehensive Strategic Partnerships in the region with Egypt, Iran, Saudi Arabia, UAE and Algeria. 5 nations from the region – Saudi Arabia, UAE, Kuwait, Bahrain and Egypt have become members of the Shanghai Cooperation Bank. Chinese trade has nearly doubled between 2017 to 2022 from $262.5 billion to 2017 $507.2 billion.

However, its economic integration in the region is shadowed by many of its security and political concerns. China has been a vocal supporter of Palestine and has officially advocated for a two-state solution to the problem. This has coloured Sino-Israeli relationships tremendously. China’s closer ties with Iran have made Washington nervous and Sino-Egyptian relationships are growing stronger. The Middle East is emerging as China’s pivotal playground in mobilizing countries of the Global South to counter US hegemony.  

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Friday

1. A suicide bombing claimed by the Islamic State group targeted a New Kabul Bank branch in Kandahar, Afghanistan, killing three people, according to Taliban officials, with a hospital source reporting a higher toll of 20. Read more: Dawn

2. A magnitude 6.1 earthquake struck off the coast of Indonesia’s Java island, according to the Geophysics Agency. The offshore quake was not immediately followed by reports of casualties or property damage. Read more: Bangkok Post
3. North Korea’s ruling party delegation, led by Kim Song-nam, director of the Workers’ Party international department, has begun a tour of China, Vietnam, and Laos. The trip, aimed at strengthening ties with socialist-oriented countries, is Kim’s first known overseas visit since taking over the role in 2012. Read more: The Korea Times
4. PepsiCo Inc plans to invest an additional $400 million in Vietnam, building two new plants powered by renewable energy. The new facilities, one for beverage manufacturing in southern Long An province and another for food processing in northern Ha Nam province, demonstrate PepsiCo’s long-term commitment to the country. Read more: Yahoo Finance

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Thursday

1. Vietnam’s third presidential change in a year comes as President Vo Van Thuong resigns after being accused of violating party rules. The move coincides with party chief Nguyen Phu Trong’s anti-graft campaign, which aims to combat corruption. With Vice President Vo Thi Anh Xuan expected to take over temporarily, potential permanent successors include Minister of Public Security To Lam and party veteran Truong Thi Mai, with Mai possibly eyeing the powerful position of party chief in 2026. Read more: CNA

2. Anies Baswedan, the losing presidential candidate, has filed a court challenge at the Constitutional Court, requesting a rerun of the election to remove President Jokowi’s son from the winning ticket, citing unfair rule changes. Ganjar Pranowo intends to file a similar complaint in response to Anies’ filing, both of which allege government interference and last-minute eligibility rule changes. Read more: The Jakarta Post
3. US diplomat Donald Lu has called on Pakistan to investigate and possibly rerun last month’s general election due to reported irregularities. He raises concerns about interference, violence, and arrests, emphasizing the importance of credibility in the electoral process. Lu denies interfering with Imran Khan’s removal from power, emphasizing the gravity of the situation amid protests. Read more: Arab News
4. Politics, red tape, and job concerns are preventing international students from returning to China following the Covid pandemic. Despite efforts to attract them, geopolitical tensions and uncertain job prospects remain, dampening enthusiasm. Some students choose safer options, resulting in a significant drop in American student numbers, while others recognize the importance of first-hand experience despite bureaucratic barriers. Read more: SCMP

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Wednesday

1. A South Korean tanker capsized near Mutsure Island in southwestern Japan, killing seven people on board. The ship, carrying 11 crew members and 980 tons of acrylic acid, was traveling from Himeji, Japan, to Ulsan, South Korea, when the incident occurred. Read more: Bloomberg

2. Turkish warplanes carried out airstrikes in northern Iraq targeting Kurdish militants following an attack that resulted in the death of a Turkish soldier and injuries to four others. The airstrikes targeted areas believed to be linked to the Kurdistan Workers’ Party (PKK), a banned separatist group in Türkiye. Read more: Arab News
3. Pakistan and the IMF have reached a preliminary agreement on the final payment of a $3 billion bailout package. The agreement, subject to IMF executive board approval, would release $1.1 billion from the 9-month standby arrangement. Read more: VOA
4. China has slammed critics of Hong Kong’s new national security law, which seeks to punish five major crimes. The law, known as Article 23, was passed swiftly, raising concerns among Western powers, the UN, and the EU about its impact on freedoms in the city. Read more: CNA

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Tuesday

1. The Taliban government confirmed that Pakistani airstrikes in Afghanistan’s border regions killed eight people, three of whom were children. The strikes, which targeted a Pakistani Taliban splinter group, were described by Pakistan’s Foreign Office as anti-terrorist operations. Read more: DW
2. On March 18, 2024, a delegation led by Russia’s Vice Culture Minister arrived in Pyongyang, North Korea. The delegation, which included an art troupe, traveled to North Korea to commemorate the 75th anniversary of the signing of the Agreement on Economic and Cultural Cooperation. Read more: Reuters
3. China’s Evergrande Group is facing allegations of a staggering $78 billion revenue overstatement, making it one of the largest financial fraud cases in history. The nation’s securities regulator fined the developer’s onshore unit, Hengda, 4.18 billion yuan ($581 million) for allegedly inflating revenue by recognizing advance sales from 2019 to 2020. Read more: Bloomberg

4. US President Joe Biden, Japanese Prime Minister Fumio Kishida, and Philippine President Ferdinand Marcos Jr. will hold their first trilateral summit on April 11 at the White House. In the face of rising tensions, the leaders will prioritize security cooperation and countering China’s influence in the South China Sea. Read more: Nikkei

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