Table of Contents
China in Quotes
“an incredibly vast array of detail, including intricate details of over 45 million corporate entities and research institutes within China” – A software company Datenna that could be pivotal for relations between China and EU.
De/Cypher Data Dive📈
Total factor productivity quantifies the amount of output that can be generated from a given quantity of inputs, making it a measure of productive efficiency. All production inputs, including labor, capital, technology, and natural resources, are taken into consideration by TFP. It is frequently used to assess innovation and technological advancement within an economy. A higher TFP suggests greater efficiency and the possibility of economic growth since it shows that an economy is producing more output in relation to the inputs used.
Quick China: Unmissable Stories 📜
China Taiwan Conundrum⚠️
China's Ministry of State Security has urged Xi Jinping to meet with the former president of Taiwan in Beijing next week on 8 April. This announcement in light of the recent controversy around the PRC deputy representative in the United Nations expressing gratitude for global support in the light of the Taiwan earthquake makes it another brick in the wall for Taiwan - China relations. Read more: IO/DECYPHER
Another Party Discipline Campaign Is Underway in China
A Party-wide campaign on Party discipline education will be held from April to July this year, according to a meeting of the Central Leading Group for Party Building held in Beijing on Wednesday. This initiative was approved by the Communist Party of China (CPC) Central Committee, the meeting confirmed. Cai Qi, a member of the Standing Committee of the Political Bureau of the CPC Central Committee and chief of the Central Leading Group for Party Building, presided over the meeting and delivered a speech. Li Xi, a member of the Standing Committee of the Political Bureau of the CPC Central Committee and deputy chief of the Central Leading Group for Party Building, attended the meeting and also made a speech. The education campaign is an important move to tighten Party discipline and achieve significant advances in exercising full and rigorous Party self-governance, the meeting said. The campaign aims to ensure that the significance of tightening Party discipline and the consequences of violating Party disciplinary rules are both fully understood, the meeting added. Read more: XINHUA
Central Bank🏦 of China Pledges Enhanced Support
China’s central bank has pledged to enhance implementation of monetary policies to stimulate domestic demand and revitalize the economy. Acknowledging that the economy is suffering from subdued demand and downbeat sentiment, the People’s Bank of China (PBOC) said it will implement prudent monetary policy in a more precise manner, pay more attention to counter-cyclical adjustments and make efforts to expand domestic demand and boost confidence, according to a Wednesday statement published after a recent policy meeting. Read more: Caixin
Ray Dalio of Bridgewater Associates Defends China and Vows To Continue To Invest
“I have had a wonderful 40-year relationship with the Chinese people and the Chinese culture that has led me to love them. For me, being involved with them and their markets go together and I wouldn’t want to be without either,” the billionaire investor wrote in a LinkedIn post. “I don’t jump in when things are booming and jump out when things are tough because I am neither ‘a fair-weather friend’ nor ‘a fair-weather investor.’”
Dalio is hopeful that the Chinese leadership will be able to come out of the present economic uncertainties if the leadership does its job well he also added “manage how to deal with political, geopolitical, nature, and technology forces well.”Though a lot ought not to be ascribed to this but there is definitely a change in sentiment towards China and that is something to watch out for as HSBC strategists in the latest research note have sounded a change in sentiment and possible turnaround in Chinese stocks. Read more: Bloomberg
US-EU Considering More Tech🧑💻 Controls on China
As both the U.S. and EU enter election seasons, top officials from both sides of the pond will meet on Thursday for their latest regular Trade and Technology Council (TTC) summit — with China high on the agenda. This time, the TTC will take place in Leuven, a city just east of Brussels, featuring U.S. Secretary of State Antony Blinken, Commerce Secretary Gina Raimondo and Trade Representative Katherine Tai. Read more: Politico EU
Follows from the March 27th Development reported by Reuters
" The United States is drawing up a list of advanced Chinese chipmaking factories barred from receiving key tools, three people familiar with matter said on Thursday, to make it easier for companies to stem technology flows into China. The list could be released in the next couple of months, one of the people said. The commerce department in 2022 barred U.S. companies from shipping equipment to Chinese factories producing advanced chips, as the U.S. seeks to severely limit Beijing's technological advances over national security concerns." Read more: Reuters
India and Netherlands are Snapping Up Chinese Solar Panels
The Netherlands and India were the biggest importers of solar panels from China in the first two months of 2024, as price cuts triggered by overcapacity boosted exports of solar equipment.
The Netherlands imported 5.38 gigawatts (GW) of China-made solar modules in January and February combined while India bought 5.33 GW, according to data compiled by analysts at Soochow Securities Co. Ltd. Out of the top 10 export destinations for the product, four were in Europe and three were in Asia, the data show. Read more: Caixin
Beyond The Great Wall 🧱
Exploring News About China in Depth
Internal Politics 🏛️
China’s former justice👨⚖️ minister Tang Yijun facing corruption probe, top anti-graft agency says
The Central Commission for Discipline Inspection has announced that Tang Yijun, China's former justice minister and current chairman of Jiangxi's political advisory body, is under investigation for corruption. The 63-year-old, suspected of serious violations, was removed from his position as justice minister in February 2023 before being transferred to Jiangxi. Tang's decades-long political career included positions in Zhejiang and Liaoning provinces, culminating in his promotion to justice minister in 2020. Read more: SCMP
Ministry of State Security releases bilingual report, urging Western forces to stop slandering and attacking China
The Ministry of State Security (MSS) issued a bilingual report urging Western forces to end their defamation and cyberattacks on China. The report highlighted recent cyberespionage accusations in the United States and the United Kingdom, which the MSS labeled as dishonest and politically motivated. It also identified the United States as a major source of cyber threats, citing numerous examples of cyberattacks and espionage activities. The report aims to expose the US and UK's aggressive actions in cybersecurity, urging global cooperation and denouncing their malicious behavior. Read more: Global Times
China doubles subsidies for child, elderly care facilities to deal with demographic decline
China has doubled subsidies for new beds in elderly care and childcare facilities to tackle its aging population and declining birth rates. The updated plan, unveiled by top economic planners and ministries, seeks to expand community-based care networks, particularly in rural areas. Each new bed in elderly care facilities will cost 50,000 yuan (US$6,911), up from 20,000 yuan, while each new slot in childcare centers will cost 20,000 yuan, up from 10,000 yuan. This move reflects China's efforts to address the challenges posed by an aging population and declining birth rates by strengthening care infrastructure and services. Read more: SCMP
China to make 5nm chips with SAQP process
Naura Technology Group, a Beijing-based state-owned enterprise, is researching Self-Aligned Quadruple Patterning (SAQP), a multiple-patterning process, in order to mass-produce 5 nanometer chips. This move is seen as a potential way for China to produce advanced chips without relying on ASML's EUV lithography machines. SAQP, despite being an older and low-tech method, may provide benefits in terms of chip density and performance. SiCarrier, another Shenzhen-based state-owned enterprise, has also received a SAQP-related patent. Huawei is optimistic about using SAQP to mass-produce 5nm chips. The SAQP method involves pitch-splitting and has the potential to improve production yields. China is also looking into Canon's nanoimprint lithography as a future option. Read more: Asia Times
China And The World🌐
Xi, Biden hold phone☎️ talks
President Xi Jinping and U.S. President Joe Biden held a phone conversation where they discussed China-U.S. relations and mutual interests. President Xi emphasized the need for stability, peace, and credibility in the relationship, highlighting the Taiwan issue as a red line. He urged concrete actions from the U.S. to align with its commitments. President Biden reaffirmed that the U.S. does not seek conflict or a new Cold War, aiming for responsible management of differences. Both leaders agreed to advance cooperation, with plans for high-level visits and dialogue on various fronts, including diplomatic, economic, and climate issues. Read more: Xinhua
China intensifies efforts for cease-fire
During a meeting with EU counterpart Sven Koopmans, China's special envoy Zhai Jun urged an immediate cease-fire in Gaza. Zhai emphasizes the importance of implementing the most recent UN Security Council resolution and the "two-state solution" to the Palestinian issue. Both diplomats express concern about the humanitarian crisis, urging swift, safe, and long-term relief efforts, with China and the EU aiming to promote peace talks and prevent the conflict from escalating further. Read more: China Daily
US ‘strongly opposes’ China’s renaming of areas along disputed Indian border
India rejected China's renaming of around 30 places in the north-eastern Himalayan state of Arunachal Pradesh, calling it "senseless" and reaffirming the region's integral status within India. China, which refers to Arunachal Pradesh as Zangnan, claims it as part of South Tibet, a claim consistently dismissed by India. The US also reiterated its recognition of Arunachal Pradesh as Indian territory and criticized any unilateral attempts by China to assert claims through military or civilian means. China responded, stating the matter had nothing to do with the US. This comes after the US had previously criticized China's renaming of areas along the China-India border as another "unilateral attempt" to assert territorial claims. Read more: SCMP
Janet Yellen says US will protect green tech from China competition
U.S. Treasury Secretary Janet Yellen, ahead of her visit to China, warned of protecting American green technology manufacturers from Chinese competition. She hinted at potential trade barriers to safeguard sectors such as batteries and solar panels. This move follows U.S. accusations of China flooding global markets with cheap green tech due to protectionist policies. Yellen's visit comes amid efforts to stabilize U.S.-China relations, with recent high-level contacts. In response, China accuses the U.S. of using export controls to limit its development. The U.S. is contemplating measures, including subsidies under President Biden's Inflation Reduction Act, to shield its industries. Read more: FT
Southeast Asians swing towards China alignment as pro-Israel bias hurts US, new survey shows
In a recent survey, Southeast Asians expressed a growing preference for aligning with China over the United States. This shift was driven by dissatisfaction with US foreign policy and the perceived benefits of China's Belt and Road Initiative. Respondents expressed a lack of confidence in the United States' ability to uphold international rules, particularly in light of its pro-Israel stance during the Gaza conflict. China's popularity increased to 50.5%, up from 38.9% the previous year, while the United States dropped from 61.1% to 49.5%. Trust in China's actions, particularly its military and economic power, has waned. Notably, countries benefiting from the Belt and Road Initiative, like Malaysia, Indonesia, Thailand, Brunei, and Laos, showed a clear shift towards China. Conversely, Vietnam, Singapore, Myanmar, and Cambodia saw decreased support for the U.S. The Philippines, however, displayed increased confidence in the U.S., largely due to tensions in the South China Sea. This shift in sentiment reflects a mix of geopolitical tensions, economic interests, and perceptions of global order. Read more: SCMP
China will use AI to disrupt elections🗳️ in the US, South Korea and India, Microsoft warns
According to Microsoft, China intends to use artificial intelligence to disrupt elections in the United States, South Korea, and India. A test run in Taiwan involved AI content swaying voters away from a pro-sovereignty candidate. Microsoft anticipates that Chinese state-backed cyber groups, as well as North Korea, will target high-profile 2024 elections, likely spreading AI-generated content to support their positions. This follows China's AI-generated disinformation campaign during Taiwan's presidential election, which used fake audio and AI-generated memes to target specific candidates. Read more: The Guardian
News From Asia 🌏
Friday
- President Joe Biden, in a call with Israeli Prime Minister Benjamin Netanyahu, warned of potentially conditioning U.S. support for Israel's offensive in Gaza on concrete steps to protect civilians and aid workers. Read more: Bloomberg
- President Yoon Suk Yeol casted his early vote in Busan as Korea begins two-day early voting for the upcoming general election, joining other political leaders ahead of the April 10 parliamentary elections. Read more: Joong Ang Daily
- The UN Human Rights Council has called on governments to halt exports of jet fuel to Myanmar to prevent its military junta from using the fuel in human rights violations. Read more: CNA
- Samsung reported a substantial rise in profit, up by 931% in Q1 2024, with sales reaching KRW 71 trillion ($52.52 billion) and operating profit at KRW 6.6 trillion ($4.88 billion). This surge, compared to Q1 2023, is attributed to recovering semiconductor chip sales, marking the company's highest earnings in over a year. Read more: Sam Mobile
Thursday
- A 7.2-magnitude earthquake struck eastern Taiwan, injuring more than 1,000 people and killing nine. The strongest earthquake in 25 years caused significant damage in Hualien, prompting warnings of potential landslides and rockfalls, especially during the Qingming holiday. Read more: CNA
- Opponents of Myanmar's military regime claimed responsibility for drone attacks on two military targets in Naypyitaw, which could result in casualties and damage. The military has yet to respond to the reported attacks, indicating a significant challenge to its authority amidst ongoing civil unrest. Read more: Bangkok Post
- SpaceX has applied for an internet service provider permit in Indonesia for its Starlink satellite unit, indicating an expansion into Southeast Asia. The trial will be held in Nusantara, Indonesia's new capital, in 2024. Read more: Kontan
- Former Malaysian Prime Minister Najib Razak has filed a court application to obtain a supplementary decree from the country's ex-king, which he claims allows him to serve the remainder of his 1MDB-related jail sentence under house arrest. This follows a halving of his 12-year sentence and a reduction in fine. Read more: SCMP
Wednesday
- Sadyr Japarov, Kyrgyzstan's President, signed a law on Tuesday that tightens control over foreign-funded NGOs, similar to Russia's "foreign agents" law, and requires more reporting and oversight. Read more: Street Insider
- Prabowo Subianto, Indonesia's president-elect and defense minister, met with Japanese Prime Minister Fumio Kishida on Wednesday during a visit to Japan that immediately follows talks with Chinese President Xi Jinping. Read more: Nikkei
- Türkiye's electoral authorities on Tuesday denied the newly elected mayor from a pro-Kurdish political party the right to hold office in an eastern city and replaced him with his runner-up in the race — a candidate from President Recep Tayyip Erdogan’s ruling party. Read more: Washington Post
- The families of Israeli hostages held in Gaza by Hamas on Tuesday (Apr 2) blasted their country's leader as a "traitor" as anger at Prime Minister Benjamin Netanyahu's handling of the war grew in the fourth consecutive night of mass protests. Read more: CNA
Tuesday
- Researchers said in a recent report that Mainland China would squelch hundreds of billions of US dollars in trade and investment from Western countries if ever faced with sanctions over a severe worsening of relations with Taiwan. Read more: SCMP
- China edges out the United States as South-East Asia’s preferred superpower by a narrow margin, if countries in the region were forced to choose between the two major powers, a survey has found. The findings, published in the ISEAS-Yusof Ishak Institute’s The State Of South-East Asia 2024 report on April 2, indicated a notable shift in sentiments among respondents from the region, who had leaned towards the US in the last four surveys. Read more: The Star
- North Korea fired a medium-range ballistic missile on Tuesday (Apr 2), Seoul's military said, the latest in a spate of banned weapons tests by Kim Jong Un's regime this year. Tuesday's launch was the third ballistic missile test of 2024, after a solid-fuel one overseen by Kim in March and another tipped with a manoeuvrable hypersonic warhead in January. Read more: CNA
- Three months after the New Year's Day earthquake rattled the Noto Peninsula, over 8,000 individuals continue to live in evacuation centers, prompting experts to question why lessons from past disasters haven’t been learned. Read more: The Japan Times
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