China this Week: Political Advisory Leadership Meeting, Strengthening Russia Ties, and UK Energy Talks Resumption
This week's Beyond the Great Wall provides an overview of key developments within China, along with insights into its foreign affairs.
China Quote 🗩
"Get rich first, and then promote common prosperity." Xi Jinping during his meeting with star entrepreneurs“.
Economic Activity🏦
Chinese Stocks Rally on Strong Alibaba Earnings, DeepSeek Optimism
Jiahui Huang writes in The Wall Street Journal that Chinese stocks surged as strong earnings from Alibaba and optimism around AI startup DeepSeek boosted investor sentiment. The Hang Seng Index closed 4% higher, reaching a three-year high, while the Hang Seng Tech Index jumped 6.5%. Alibaba, Lenovo, and Bilibili saw major gains. Analysts credit China's pro-business signals and AI advancements for the rally, but caution that expectations for policy reforms ahead of the National People’s Congress in March may lead to disappointment.
China Puts Brakes on US Stock Listings for Homegrown Companies
Financial Times reports that China’s securities regulator is tightening restrictions on small Chinese firms seeking to list on US stock exchanges, concerned over market manipulation and price-rigging. The China Securities Regulatory Commission (CSRC) has slowed IPO approvals, with applications dropping from 22 in early 2024 to 11 since June. Beijing’s move reflects broader efforts to reduce financial ties with the US amid geopolitical tensions. Analysts suggest China prefers listings in Hong Kong to avoid risks associated with the volatility of US-listed Chinese stocks.
How Cryptocurrency Gets Used to Move Billions of Yuan in and out of China
Tang Ailin and Kelly Wang write in Caixin Global that cryptocurrencies have become a key tool for illegal currency exchanges in China, complicating law enforcement efforts. A 2023 bust in Shandong exposed a network using Tether and Ethereum to move billions overseas, circumventing China's strict $50,000 annual forex cap. Authorities are increasingly concerned as underground banking operations exploit crypto’s decentralised nature to bypass financial controls.
Inside China🐉
China's National Political Advisory Body Holds Leadership Meeting
Xinhua reports that the 14th National Committee of the Chinese People's Political Consultative Conference (CPPCC) held its 31st Chairperson's Council meeting on Wednesday. Chaired by Wang Huning, the meeting focused on promoting high-quality development in the private sector through research and consultations. Wang urged political advisors to improve their proposal formulation and consensus-building skills to ensure the success of the upcoming CPPCC annual session.
Hong Kong to Launch 2 AI Forums Aimed at Bridging China and the World Amid US Tech War
Ben Jiang writes in South China Morning Post that Hong Kong is set to host two AI forums as part of its push to become a global technology hub amid rising Sino-US tensions. Organised by the Hong Kong Investment Corporation (HKIC), the forums will focus on AI research collaboration and embodied AI robotics, with support from Beijing’s AI research institutes. As the city shifts towards a tech-driven economy, it has also allocated HK$1 billion to establish an AI R&D institute by 2026-27.
Teenage Hiker Lost in Mountains for 10 Days with a Broken Arm Survives by Eating Toothpaste
Maroosha Muzaffar writes in The Independent that 18-year-old Sun Liang survived 10 days in the frigid mountains of northwest China after getting lost on the Ao-Tai Pass. With a broken arm and no food, he relied on melted snow, river water, and toothpaste to survive before being rescued. The pass, known for its treacherous terrain, was closed in 2018, but adventurers continue to take the risk. His rescue, costing his family £8,700, highlights the dangers of attempting the banned trail.
China Could Lose 35% of Its Cropland by 2100, Scientists Warn
Shi Huang writes in South China Morning Post that a peer-reviewed study warns China could lose 35% of its cropland by 2100, even if global warming is limited to 1.5°C under the Paris Agreement. Researchers project that key grain-producing regions like the Sichuan Basin and northeast plains will turn into wetlands or forests, raising concerns over food security. The study, funded by China's National Natural Science Foundation, calls for updated policies to protect cropland and optimise agricultural resource management.
China and the World🌏
China, Anxious About Trump and Putin, Tells Russia It Is ‘True Friend’
Katrina Northrop and Vic Chiang write in The Washington Post that Chinese President Xi Jinping reaffirmed close ties with Russia, calling it a "true friend" amid concerns over President Donald Trump’s diplomatic overtures to Moscow. Some experts speculate that Trump may be attempting a “reverse Nixon” strategy to isolate Beijing, but analysts argue the deep economic and strategic partnership between China and Russia remains strong. While a potential resolution to the Ukraine war could benefit China by easing tensions with Europe, Beijing remains wary that U.S. focus may shift more towards competing with China.
Cook Islands China Deal Riles Allies as West's Grip Loosens
Katy Watson writes in BBC that the Cook Islands' new agreements with China have caused tensions with New Zealand and Australia, key allies. Prime Minister Mark Brown, without public consultation, signed deals covering infrastructure, tourism, and deep-sea mining. Protests erupted in Rarotonga, with critics fearing economic dependence on China. The move comes as Western influence in the Pacific wanes, while Beijing strengthens ties through aid and security pacts. Australia and New Zealand remain wary, especially amid recent Chinese military exercises in the region.
British Energy Secretary to Visit China in March to Restart Energy Talks, Meet Investors
Joe Cash writes in Reuters that UK Energy Secretary Ed Miliband will visit China in March to revive UK-China energy cooperation and attract Chinese investment. While nuclear power will not be discussed, talks will focus on clean energy and energy security. Miliband will meet his Chinese counterpart Zhang Jianhua in Beijing on March 17 and host a roundtable with private investors. The Labour government is seeking to recalibrate UK-China ties amid strained US-China and EU-China relations.
The AfD’s Unusual China Connection
The Economist reports that Alice Weidel, leader of Germany’s far-right AfD, has an intriguing China connection, having lived there for six years, studied its pension system, and reportedly worked for the state-owned Bank of China. Her positive remarks on China have made her a celebrity on Chinese social media and raised concerns among Western security officials about AfD’s reluctance to criticise Beijing. Despite this, AfD maintains ties with the American right, which is generally more hawkish on China, creating potential ideological contradictions.
Thailand Deports Dozens of Uyghurs to China
Laura Bicker and Kathryn Armstrong write in BBC that Thailand has deported at least 40 Uyghurs to China despite international outcry over potential human rights abuses. The group, detained in Bangkok for a decade, was flown to Xinjiang on Thursday. Rights organisations warn they face a high risk of torture and imprisonment. The U.S., U.N., EU, and UK condemned the move, calling it a violation of international law. Thailand defended the deportation, citing a lack of third-country resettlement offers, including from Turkey, which has previously granted asylum to Uyghurs.
Taiwan Condemns China for Conducting Shooting Drills Off Its Coast
AP News reports that Taiwan has condemned China’s recent military exercises near its southwest coast, calling Beijing "the biggest troublemaker for regional peace." Taiwan’s Defence Ministry detected 45 Chinese aircraft and 14 naval vessels in a 24-hour period, with 34 crossing into its waters and airspace. China dismissed Taiwan’s concerns as exaggerated. The drills follow increased tensions, including Chinese coast guard incursions near Taiwan’s Kinmen island and disputes over severed undersea cables.
Chinese Temu Sellers Use Fake U.S. Postage Labels to Boost Profits
Rest of World reports that some Temu merchants are using counterfeit USPS shipping labels to evade delivery costs in the U.S., with fake labels advertised on Chinese social media for as little as 60 cents. This scam costs USPS millions annually. While a minority of merchants use this tactic, rising logistics costs could drive more sellers to adopt it. U.S. authorities are cracking down, having previously arrested a California logistics operator for a $150 million postage fraud scheme. Temu insists fake labels violate its policies, but regulatory scrutiny on Chinese e-commerce platforms is intensifying.
Tech in China🖥️
China Leads Global Effort with Int'l Standard for Elderly-Care Robots
Xinhua reports that the International Electrotechnical Commission has released a global standard for elderly-care robots, spearheaded by China. The standard sets technical benchmarks for design, manufacturing, testing, and certification, addressing aspects like accessibility, reliability, energy efficiency, and health monitoring. With China's aging population reaching 310 million in 2024 and projected to exceed 400 million by 2035, the initiative aims to enhance product quality and foster growth in the smart elderly-care industry.
China Launches Powerful Methanol-Diesel Ship Engine
Xinhua reports that China has unveiled a high-performance methanol-diesel dual-fuel ship engine in Shanghai, developed by subsidiaries of China State Shipbuilding Corporation Limited (CSSC). The engine, with a maximum output of 64,500 kilowatts, generates 95% of its power using methanol, reducing carbon dioxide emissions by over 7.5% compared to conventional diesel engines. It features a digital control system, efficient fuel injection, and 5G-enabled real-time monitoring. The engine will be installed on a 16,000-TEU container ship, marking its operational debut.
De/Cypher Data Dive 📊
During the eight-day Lunar New Year period, the Chinese film market generated 9.5 billion yuan ($1.3 billion) in box office revenue, marking an 18.6% increase from the same period last year. The box office figure surpassed last year's record of 8 billion yuan for the same eight-day period.
The recent Chinese Lunar New Year holiday was marked by the phenomenal success of the animated blockbuster Ne Zha 2, which has become China's highest-grossing film of all time and the first from Asia to break into the global box office top 10.
Image of the Week📸
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