China in Quotes
“He’s really been a force that positions China in this shift from being very resistant against climate actions to really entering the global stages and joining the nations that are trying to do more” Nis Gruenberg of Mercator Institute for China Studies (MERICS), on Xie Zhenhua.
Xie Zhenhua the face of China’s international climate strategy who for the past four decades has been working on shifting the Chinese stance from being unprepared for climate change negotiations to being a climate change leader, is set to retire soon. In November he turned 74, and will soon be bidding farewell to his time as the leading climate diplomat for China, the COP-28 being his last one. Xie was made the head of the State Environmental Protection Administration in 1998, in 2005 he had to quit over a pollution scandal. From 2007 he became the lead climate negotiator for China, in 2015 he was made the special climate change representative. Although he retired in 2019, he was brought back from retirement to be appointed as Special Climate Envoy, around the same time as John Kerry was appointed to a similar position by President Biden.
Quick China Fact 📊
Timeline: News From Asia
Friday
China has unveiled its first ocean drilling vessel, the Mengxiang, which is designed to carry out an unprecedented mission: drilling through the Earth’s crust. If successful, this will mark humanity’s first venture into the upper mantle, providing new insights and potentially reaching new frontiers in Earth science research. The massive ship, whose name means “dream” in Chinese, was created by the China Geological Survey along with over 150 research institutes and companies. (SCMP)
Embattled Chinese tech company Huawei Technologies said its business is “pretty much back on track” despite a U.S. crackdown, with revenue in 2023 hitting its highest level since 2020. (Nikkei Asia)
A Pakistani separatist group known for attacking Chinese interests in the country has dissolved after the surrender of its top leader, but the deadly insurgency shows few signs of ending. Sarfraz Bangulzai, head of the Baloch Nationalist Army (BNA), turned himself over to authorities in the city of Quetta last week along with the militant group’s 70 remaining members, in what is thought to be the first time a top-ranking separatist leader has surrendered to security forces. (Nikkei Asia)
The former leader of a Hong Kong pro-independence group, who was sentenced under a national security law imposed by China, fled to Britain and will seek asylum over there, he told the Washington Post. In November 2021, Tony Chung, who was then 20, was sentenced to 43 months in prison for trying to separate the city from China, and for money laundering. Chung was charged with secession under the sweeping national security law in 2020 and denied bail. (Reuters)
Thursday
Three senior Chinese aerospace-defence executives have been stripped of their titles as members of top national political advisory body in a possible sign Beijing is continuing its anti-corruption efforts in the sector that is key to China’s military capacity. Xinhua reported that the Chinese People’s Political Consultative Conference (CPPCC) decided at a conference on Wednesday to revoke the seats of Wu Yansheng, chairman of the China Aerospace Science and Technology Corporation (CASC), Liu Shiquan, chairman of the board of the China North Industries Group Corporation, known internationally as the Norinco Group, and Wang Changqing, deputy manager of the state-owned China Aerospace Science and Industry Corporation (CASIC). (SCMP)
The Israeli embassy in South Korea has removed a video showing an imaginary scenario in which Koreans are attacked by masked assailants in Seoul, a reference to Hamas, Seoul’s foreign ministry said on Thursday. The ministry said in a statement that the video was deemed “inappropriate” and that it had asked the Israeli embassy to take it down. (SCMP)
North Korean leader Kim Jong Un has ordered military and munitions industries to accelerate war preparations in response to “confrontation moves” by the United States. Kim emphasized economic goals for the new year, focusing on the country’s five-year development plan and stabilizing agricultural production. (Ground News)
Iron ore fell from the strongest level since June 2022 as investment banks and securities brokerages expect the slump in China’s housing construction to persist into next year. (Bloomberg)
Wednesday
Exporters in Zhejiang province have been told to aim high in 2024 with their growth targets to help China’s economic recovery. But experts warn despite local government assistance, some ‘structural or political’ obstacles to foreign trade need Beijing’s help. Chinese leaders beat the drum for the country’s economic powerhouses to “shoulder bigger responsibilities” in helping promote the nation’s economic recovery and stabilise growth. (SCMP)
Ukraine war and Israel-Gaza war illustrate the dangers that Chinese investors could face in unstable regions, including some participants in the Belt and Road Initiative. Forget the one-man ‘wolf warrior’ depictions in bombastic films – it takes an army of private security contractors to ensure Chinese firms are protected abroad. (SCMP)
Since the U.S. approved the potential sale of 12 F-16 fighter jets to the Philippines in 2021, Manila has been contending with the question of how to finance the costly purchase. “It’s still too expensive, so we have to find a way to be able to finance it in the long term. We want to change our [economic] growth,” Jose Manuel Romualdez, Philippine ambassador to the U.S., told Nikkei Asia in an interview this month. (Nikkei Asia)
Iranian President Ebrahim Raisi will visit Ankara on Jan. 4 to meet Turkish President Tayyip Erdogan for talks on Gaza, Syria, and bilateral ties. Turkey and Iran have complicated ties due to their opposing stances on the Syrian civil war, with Turkey supporting rebels and Iran supporting President Bashar al-Assad. (Ground News)
Tuesday
Flash floods in northern Malaysia have forced some 25,000 people from their homes in Kelantan and Terengganu so far after the Golok River hit record highs, with waters trapping entire communities across the border area with Thailand. Image below (SCMP)
Israel will need to increase defence spending by at least 30 billion shekels (US$8.3 billion) next year, according to its finance ministry, as the war in Gaza rages on.
The ministry, in a document presented to parliament on Monday, said the overall 2024 budget will probably have to total 562 billion shekels (US$155 billion), compared to 513 billion when the spending plan was first approved last May. (Reuters/SCMP)
Jailed Russian opposition politician Alexei Navalny has been tracked down to a penal colony north of the Arctic Circle, his spokeswoman said on Monday, after supporters lost touch with him for more than two weeks. Navalny, 47, was tracked down to the IK-3 penal colony in Kharp in the Yamal-Nenets region, about 1,900 km (1200 miles) north east of Moscow, spokeswoman Kira Yarmysh said. (Reuters)
Experts expect China’s economic growth will slow in the coming year to 4.6%, following a predicted 5.2% expansion this year, amid a slump in the real estate market and stagnant consumption. (Nikkei Asia)
Beyond The Great Wall
Exploring News About China in Depth
Decypher Opinion: China’s Intellectual Property Theft and the Ongoing Struggle for Fair Trade Practices
Intelligence chiefs from the Five Eyes alliance, consisting of Australia, Canada, New Zealand, the United Kingdom, and the United States, have accused China of engaging in extensive intellectual property theft and misusing artificial intelligence for hacking and spying. This accusation is part of a broader concern by the United States about China’s unfair and illegal economic practices, particularly in the technology sector. The allegations against China include cyber intrusions, human intelligence operations, and misappropriation of confidential information across various industries. The estimated annual cost of China’s infringement on American intellectual property ranges from $225 billion to $600 billion, according to the Office of the United States Trade Representative and the Commission on the Theft of American Intellectual Property.
In recent years, there have been several high-profile cases involving intellectual property theft in China. One such case involved Micron Technology Inc accusing Fujian Jinhua Integrated Circuit Co and United Microelectronics Corp of stealing memory chip trade secrets in 2017. In May 2023, Micron’s chips were prohibited in Chinese critical infrastructure. However, to improve relations, Micron agreed to invest $606.2 million in its Chinese chip-packaging facility. Another notable case involved Sinovel, a Chinese wind turbine manufacturer, illegally obtaining software code from American Superconductor Corporation in 2011. Despite a conviction in the US in 2018, Sinovel continues to use the stolen software, which affects 20% of China’s wind turbines. Other cases include engineer Hanjuan Jin transporting confidential Motorola documents to Beijing in 2007, and Huawei engineers stealing information and testing equipment from T-Mobile in the Tappy the Robot case, resulting in a $4.8 million damages award in 2017.
The surge in IP lawsuits in China is affecting foreign businesses, with Japanese companies like Ryohin Keikaku facing over 10 disputes. Traditionally, IP cases involved Chinese parties as alleged infringers, but the trend is shifting. In 2020, China saw a 28% increase in IP infringement cases, attributed to the rise in Chinese-owned IP and enhanced legislation, allowing higher damages.
Zhaunli, a notable Chinese company, finds itself in the midst of the evolving landscape of intellectual property (IP) disputes in China. As Chinese businesses increasingly assert their own IP rights, Zhaunli reflects a trend where foreign companies, including Japanese counterparts like Ryohin Keikaku, are grappling with legal battles over trademarks.
In 2022, the total number of valid invention patents in China increased by 17.1 per cent, reaching 4.21 million, while the number of registered trademarks rose by 14.6 per cent to 42.67 million. China has strengthened IP protection in patents, trademarks, copyrights, and new plant species. The country has also intensified its efforts to combat irregular patent applications and malicious trademark registrations. In 2021, Chinese courts received 526,165 new IP cases, with patent cases and technology contract disputes rising by 23.25 per cent and 5.55 per cent, respectively, from the previous year. However, there are still several challenges that need to be addressed.
In the first half of 2023, China’s Supreme People’s Procuratorate reported a significant increase of 36.1% in intellectual property (IP) crime prosecutions, totaling 11,675 cases. Criminal trademark infringement constituted the majority, with 10,384 individuals (88.9% of the total) prosecuted. Copyright violations followed with 1,122 cases, while trade secret misappropriation saw 167 cases, marking an 89.8% year-on-year increase. Trademark infringements extended to various products, including cigarettes, liquor, food, and healthcare items. IP crimes are expanding into emerging industries, involving activities such as selling refurbished electronic products and manufacturing counterfeit auto parts. Trade secret theft predominantly involves internal personnel, impacting both traditional and high-tech companies.
IP theft is a significant problem in China, which is often attributed to shortcomings in its political, legal, and economic frameworks, such as the emphasis on state control and conformity, potential preferential treatment for state-owned enterprises, and political connections and bribery. Implementing civil discovery for trade secrets, a common practice in Western jurisdictions would require a significant change in China’s legal philosophy. With China’s surge in IP litigation attributed to a rise in domestically owned IP and enhanced legislation, companies like Zhaunli are navigating this legal terrain. The company’s experiences underscore the necessity for foreign entities, to strategically adapt and develop robust plans for handling IP lawsuits in China.
Navigating Taiwan relations in 2024: Practical considerations for European policy makers
The upcoming presidential elections in Taiwan hold significant importance for several reasons. The outcome of the elections will shape the future of Taiwan’s relations with Beijing and have broader implications for cross-Strait dynamics and regional stability. The report emphasizes that Europe has begun to recognize the deep linkage of its interests to the status quo in the Taiwan Strait and the region as a whole.
The report highlights the need for Europe to increase its knowledge and understanding of Taiwan’s domestic politics and its impact on cross-Strait relations and regional dynamics. It suggests that Europe should prioritize knowledge, preparedness, and resilience in order to effectively respond to the outcomes of the elections and future challenges in the region.
The report also mentions that recent events, such as US-China technology competition, China’s aggression in the Taiwan Strait, and its coercion against Lithuania for allowing the opening of a Taiwan Representative Office, have raised concerns in Europe. The elections in Taiwan are seen as a factor that can directly impact European interests and security.
The report also discusses Beijing’s perspective on the elections, noting that it would prefer any candidate other than Lai Ching-te. The KMT, which oversaw close engagement with China during the presidency of Ma Ying-jeou, is seen more favourably by Beijing. However, the report emphasizes that the results of the elections are unlikely to fundamentally shift the current trajectories in cross-Strait and regional tensions in the long run. Other factors, such as US-China relations and the domestic situation in China, are more likely to bring about structural changes in regional dynamics. In summary, the elections in Taiwan matter because they will shape the future trajectory of Taiwan’s relations with Beijing, have broader implications for cross-Strait dynamics and regional stability, and directly impact the interests and security of various international actors, including Europe. Europe’s understanding of Taiwan’s domestic politics and its proactive engagement in the region is crucial in effectively responding to the outcomes of the elections and ensuring the preservation of its interests in the Taiwan Strait.
Beijing’s stance on Taiwan is outlined in the report The Chinese government considers Taiwan as an integral part of its territory and views the issue of Taiwan as a matter of national reunification. Beijing aims to achieve reunification with Taiwan, but its preferred strategy is “peaceful reunification” without renouncing the use of force if necessary.
Chinese leaders and state media often criticize the Democratic Progressive Party (DPP) and its candidate, Lai Ching-te, for their perceived “separatist” stance and rhetoric, especially since the DPP officially rejected the 1992 Consensus in a 2019 speech. The 1992 Consensus is a supposed agreement reached between semi-official representatives of the People’s Republic of China (PRC) and the Republic of China (under the Kuomintang) during a 1992 meeting in Hong Kong. However, the consensus is disputed, with different interpretations from both sides.
Beijing’s vision for post-reunification Taiwan has changed. While the “One country, two systems” model remains on the table, President Tsai Ing-wen has formally rejected it. The document mentions that the new language suggests a governance model for Taiwan similar to the one imposed on Hong Kong, where Beijing’s policies and legislation would have primacy, potentially limiting Taiwan’s freedoms.
Overall, Beijing’s stance on Taiwan is rooted in its goal of national reunification and its preference for peaceful reunification while keeping the option of using force if necessary. It views the DPP’s rejection of the 1992 Consensus and its perceived separatist tendencies as challenging its reunification efforts.
Read more here.
From lingxiu Mao to lingxiu Xi, is the cult of personality back?
Chinese President Xi Jinping on 26th December, 2023 took the 130 year celebration of Mao Zedong to push a framework for countering the West’s capitalist model. Xi Jinping talked about “Chinese modernisation”. The problem is it is a vague concept which is a potpourri of welfarism, and communism which are at odds with each other. The fact that President Xi is linking his own project’s to Mao, allows the state media to label him as an extension of the founder of modern China. The problem is it glosses over the role Mao played in famine induced by his Great Leap Forward of the 1950’s, and the chaos of Cultural Revolution of 1970’s. The fact that the officials now call Xi lingxiu (領袖) or leader, the question is will the personality cult lead to warped choices?. Read more: JapanNews
China decries Taiwan for ‘hyping up’ military threat, sends warplanes
China’s defence ministry accused Taiwan’s government on Thursday of deliberately “hyping up” a military threat from China for electoral gain ahead of elections on the island in just over two weeks’ time, but again sent warplanes into the Taiwan Strait. Taiwan’s Jan. 13 presidential and parliamentary election will shape the Chinese-claimed island’s relations with Beijing, which over the past four years has ramped up military pressure to assert its sovereignty claims. Read more: Reuters
Vietnam’s ‘bamboo diplomacy’ shifts into higher gear
Communist Party-ruled Vietnam has upgraded ties with the world’s top powers, including former foes, China and the United States, as part of its “bamboo diplomacy”, which it has pro-actively pursued since 2021 to navigate rising global tensions. After a string of deals this year and last, the Southeast Asian country’s top partners include the United States, China, India, South Korea and Russia, which for decades has supplied most of Vietnam’s military equipment. (In Box: What is Bamboo Diplomacy? A regional manufacturing powerhouse, Vietnam is an increasingly strategic player in global supply chains. To bolster this position, the country’s most powerful figure, Communist Party General Secretary Nguyen Phu Trong, used in 2021 the imagery of “strong roots, stout trunk, and flexible branches” of the bamboo plant to describe Vietnam’s foreign policy approach of having “more friends, fewer foes”.) Read more: Reuters
China’s top spy agency vows to safeguard critical minerals, slams Western tech containment
China’s top anti-espionage agency has appealed to the public for more tip-offs after claiming to have caught a foreign company trying to steal secrets from a naval base. The State Security Ministry said it had foiled an attempt to gather intelligence about new military equipment – including what it described as “trump card” weaponry – in an unidentified coastal city. Read more: Reuters
Russia tells South Korea not to be surprised if Moscow retaliates over sanctions
Russia told South Korea on Wednesday not to be surprised if Moscow retaliates against Seoul for expanding the list of goods which cannot be exported from the East Asian nation to Russia without special permission. Seoul said this week it would add over 600 types of goods which could potentially be used for military purposes to its export control list for Russia. With the added bonhomie between China, Russia, and the North Koreans, this will be of utmost caution for the South Koreans. Read more: Reuters
China calls for tougher crackdown on use of crypto for illegal forex trading
Chinese authorities have called for a tougher crackdown on the use of cryptocurrencies as a tool for illegal foreign exchange trading in the latest effort to fend off financial risks. Read more: SCMP
China Sanctions US Research Firm and 2 Individuals Over Reports on Human Rights Abuses in Xinjiang
China has sanctioned a US research company and two analysts for their reports on human rights abuses in Xinjiang, freezing their assets and prohibiting transactions with them. The United States curbed imports from three Chinese firms based on Kharon’s findings of labor transfers in 2017. China’s retaliation is in response to a US government report on human rights in Xinjiang, which it claims spreads false stories. Read more: Ground News
American Spies Confront a New, Formidable China
Beijing’s spy catchers all but blinded the U.S. in China a decade ago when they systematically rounded up a network of Chinese agents working for the CIA. As many as two dozen assets providing information to the U.S. were executed or imprisoned, among them high-ranking Chinese officials. The Chinese are now using AI to track US spies, and there seems to be greater information asymmetry on both sides than ever. Read more: Political Wire
Central conference on work relating to foreign affairs held in Beijing
The Central Conference on Work Relating to Foreign Affairs was held in Beijing from Wednesday to Thursday. Xi Jinping, general secretary of the Central Committee of the Communist Party of China, Chinese president and chairman of the Central Military Commission, delivered an important speech at the conference. In his speech, Xi systematically reviewed the historic achievements and valuable experience of major-country diplomacy with Chinese characteristics in the new era, elaborated on the international environment and historical mission of China’s external work in the new journey, and made comprehensive plans for China’s external work at present and in the future. Read more: china.org.cn
Tesla’s China-made EV sales fall 17.8% in Nov, biggest drop since Dec 2022
Sales of U.S. automaker Tesla’s (TSLA.O) China-made electric vehicles (EVs) skidded 17.8% in November from the same month a year earlier, to 82,432 cars, China Passenger Car Association (CPCA) data showed on Monday. Chinese rival BYD (002594.SZ), with its Dynasty and Ocean series of EVs and petrol-electric hybrid models, saw passenger vehicle deliveries set another record at 301,378 vehicles in November, up 0.09% from October and 31% from a year earlier. Read more: Reuters
China’s lottery sales fall 2.5 pct in November
China’s lottery ticket sales fell 2.5 percent year on year to 50.54 billion yuan (about 7.12 billion U.S. dollars) in November, data from the Ministry of Finance showed on Thursday. Sales of lottery tickets to support the country’s welfare system reached 16.94 billion yuan last month, an increase of 29.5 percent from a year earlier, the data revealed. In the first 11 months of 2023, sales of lottery tickets in China totaled 526.41 billion yuan, up 45.1 percent year on year. Under China’s lottery management rules, funds raised from ticket sales are used for administrative expenses and public welfare projects, and to fund prizes. Read more: china.org.cn
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