Table of Contents
China in Quotes
“The meeting had been expected to happen late last year but was postponed without explanation. We should get a better sense of the leadership's medium-term reform priorities during the third plenum.”
Julian Evans-Pritchard, head of China economics at Capital Economics.
De/Cypher Data Dive📈
US-CHINA Student Woes
Sino-US relations have seen considerable decline in recent times. A major consequence of this is the declining diaspora in either country. While America insists on expanding bilateral ties beyond trade and security, stemming from its belief that the Chinese people are not represented by the Communist Party alone, statistics show a different scenario. US-China student exchanges have been hard-hit by the declining relations.
While 30,000 Chinese students are present in the US, approximately 900 American students find themselves studying in China. A void in understanding about Chinese people and their culture is caused by these figures. At the APEC Summit, an ambitious policy was unveiled to address this shortfall, with China promising to bring 50,000 US students to the country in 5 years. To accomplish this, quotas have been given to a number of Chinese universities.
China De/Cypher: Vital Statistics
China Has 350 Warships. The US Has 290. US has global commitments, China sticks closer home. US needs a new strategy
America has a big problem in the Pacific—namely that its Navy is significantly smaller than China’s and spread out among many global commitments, James Stavridis writes in Bloomberg Opinion. Given the fact that any combat in the South China Sea would take place in the shadow of the Chinese mainland—in effect, a massive and unsinkable aircraft carrier. (Bloomberg)
Although, Huawei has been banned from organising research. It has been secretly funding top global universities through a Washington foundation.
Huawei Technologies is secretly funding cutting-edge research at American universities including Harvard through an independent Washington-based foundation. The blacklisted Chinese tech giant is the sole funder of a research competition that has awarded millions of dollars since its inception in 2022, and it’s attracted hundreds of proposals from scientists around the world. They include those at top US universities that have banned researchers from working with the company. (Bloomberg)
Asia View
United Against Money Laundering: US and China
Written By Farheen, Policy and Trust Analyst
Despite ongoing global tensions and conflicting views on numerous issues, the United States and China have come together in a notable collaboration to prevent money laundering. On April 6th, US Treasury Secretary Janet Yellen's visit to Guangzhou marked the announcement of a bilateral forum dedicated to anti-money laundering efforts. This comes after two years of China’s refusal to cooperate fully with the US on financial crime investigations.
This partnership holds significant interest for the United States, which is battling an opioid crisis responsible for over 105,000 deaths annually. The U.S. has pointed to China as a major source of fentanyl, which led to China placing class-wide controls on the substance in 2019. However, this regulatory action has led to shifts in trafficking routes, with fentanyl now increasingly passing through Mexico before reaching the United States.
These concerns are echoed in the broader context of China's increasing presence in the global money laundering arena. Reports from both the American Intelligence Journal and the US Treasury Department, as well as international bodies such as Europol and the UN Office on Drugs and Crime, reinforce this standpoint. They report a marked increase in Chinese involvement in financial crimes throughout Europe and Southeast Asia.
Within China, there is a heightened drive to tackle money laundering, especially as the country seeks to control the illicit transfer of funds abroad by wealthy individuals who seek to bypass regulations limiting the movement of over $50,000 yearly. China’s economic challenges may exacerbate this problem, pushing more people towards illegal money transfer channels.
At the heart of Chinese money laundering is the feiqian system. This system is a high-tech version of traditional informal banking, adapted for illegal activities such as drug trafficking. It allows criminals to transform dirty money into yuan, sidestepping the usual methods of detection. Launderers use modern technology to encrypt their conversations and move money in secret. They use WeChat and cryptocurrencies for these undercover transactions. The cultural idea of guanxi, which puts trust above paperwork, makes it difficult for authorities to trace laundering activities. The blend of cultural knowledge and tech savvy makes China's money laundering methods notably difficult for international law enforcement to detect and stop.
Despite ongoing challenges in combating money laundering, China has taken significant domestic measures, as evidenced by the prosecution of over 2,300 cases in the last three years. Although these efforts demonstrate a commitment to addressing financial crime within its borders, the task of establishing long-term international cooperation remains substantial.
The U.S. estimates that an alarming $150 billion in illicit funds circulate through Chinese financial channels annually, highlighting the magnitude of the problem. In response, China is contemplating amendments to its anti-money laundering legislation, aiming to strengthen its financial regulatory framework.
The U.S.-China anti-money laundering forum represents a mutual recognition that money laundering is a global challenge requiring joint action. However, whether this collaboration can successfully combat widespread financial crimes is yet to be seen.
Quick China: Unmissable Stories 📜
China- Russia Space Militarisation Could Include Nuclear Weapons: Pentagon
For the first time in an unclassified setting, a senior Pentagon official has confirmed that the US believes Russia is preparing to deploy a nuclear weapon in space. In testimony on Wednesday to the Republican-led House Armed Services Committee, assistant defence secretary for space policy John Plumb also asserted that China and Russia have “militarised” space.
According to Plumb, Russia is “developing a concerning anti-satellite capability related to a new satellite carrying a nuclear device that Russia is [also] developing”. He said the US is concerned about being “unable to convince them otherwise to ultimately fly a nuclear weapon in space”. (SCMP)
Wang Huiyao writes 'US Concerns on Chinese Over Capacity is still a non-issue' urges to look at them from Climate Change Cooperation Framework.
The issue of overcapacity in China has once again found its way into international discourse. During her recent visit to China, US Treasury Secretary Janet Yellen emphasised the concerns shared by the United States and other nations over China’s industrial overcapacity spilling into the global economy.
Echoing Yellen, US Secretary of State Antony Blinken also raised unfair Chinese trade practices during a subsequent meeting with local government officials in Shanghai.
Overcapacity, denoting a situation where production surpasses demand, has become a recurring theme in discussions on China’s economic landscape, resonating across various sectors and industries.
China became the world’s largest exporter in 2009, triggering apprehension about an economic model more centered on acquiring market share than brand-building. Back then, the contraction of global trade exacerbated fears about overcapacity, so much so that The New York Times ran a piece fretting over China’s excess capacity.
Yet, history reveals that this state of affairs was short-lived, and that the hand-wringing about overcapacity was unnecessary. Global demand quickly recovered in 2010, as exports grew 14.5 per cent, a rebound from the 12 per cent fall in the previous year. And concerns about China’s capacity began to dissipate. (SCMP)
Will AI kill dubbing industry in China?
The Chinese dubbing community is grappling with the impacts of new audio-generating AI tools. According to the Chinese publication ACGx, for a new audio drama, a music company licensed the voice of the famous dubbing actor Zhao Qianjing and used AI to transform it into multiple characters and voice the entire script.
But online, this wasn’t really celebrated as an advancement for the industry. Beyond criticizing the quality of the audio drama (saying it still doesn’t sound like real humans), dubbers are worried about the replacement of human actors and increasingly limited opportunities for newcomers. Other than this new audio drama, there have been several examples in China where AI audio generation has been used to replace human dubbers in documentaries and games. E-book platforms have also allowed users to choose different audio-generated voices to read out the text. (MIT, The China Report)
Politburo meets on 30th April, 2024. Third Plenary Session Will be in July
The Political Bureau of the CPC Central Committee held a meeting on April 30th to decide to convene the Third Plenary Session of the 20th Central Committee of the Chinese Communist Party in Beijing this July. The main agenda will include a report by the Political Bureau to the Central Committee, with a focus on studying further comprehensive deepening of reforms and advancing Chinese-style modernization. The meeting also analyzed the current economic situation and economic work, and reviewed the "Opinions on Continuously and Deeply Promoting High-Quality Integrated Development of the Yangtze River Delta with Several Policy Measures." The meeting was chaired by Xi Jinping, General Secretary of the CPC Central Committee.
In original
中共中央政治局4月30日召开会议，决定今年7月在北京召开中国共产党第二十届中央委员会第三次全体会议，主要议程是，中共中央政治局向中央委员会报告工作，重点研究进一步全面深化改革、推进中国式现代化问题。会议分析研究当前经济形势和经济工作，审议《关于持续深入推进长三角一体化高质量发展若干政策措施的意见》。中共中央总书记习近平主持会议。
The meeting pointed out that the continued improvement in the economic trend still faces many challenges, primarily insufficient effective demand, significant operational pressure on enterprises, numerous risks and hidden dangers in key areas, an inadequately smooth domestic big cycle, and the complexity, severity, and uncertainty of the external environment have markedly increased. At the same time, it must be recognized that China's economy has a stable foundation, multiple advantages, strong resilience, and great potential. A good start and an improving trend are the basic characteristics and trends of the current economic operation, and there is a need to enhance confidence in economic work.
会议指出，经济持续回升向好仍面临诸多挑战，主要是有效需求仍然不足，企业经营压力较大，重点领域风险隐患较多，国内大循环不够顺畅，外部环境复杂性、严峻性、不确定性明显上升。同时必须看到，我国经济基础稳、优势多、韧性强、潜能大，开局良好、回升向好是当前经济运行的基本特征和趋势，要增强做好经济工作的信心 (Sinocism)
US President Biden Throws Allies India, Japan, and China under the same 'Xenophobic' category
President Joe Biden said on Wednesday that "xenophobia" from China to Japan and India is hobbling their growth, as he argued that migration has been good for the U.S. economy.
"One of the reasons why our economy's growing is because of you and many others. Why? Because we welcome immigrants," Biden said at a Washington fundraising event for his 2024 re-election campaign and marking the start of Asian American, Native Hawaiian and Pacific Islander Heritage Month.
"Why is China stalling so badly economically, why is Japan having trouble, why is Russia, why is India, because they're xenophobic. They don't want immigrants. Immigrants are what makes us strong."
The International Monetary Fund forecast last month that each country would see its growth decelerate in 2024 from the year prior, ranging from 0.9% in highly developed Japan to 6.8% in emerging India. While the US economy will grow at 2.7% from 2.5% last year. (Reuters)
Will Xi Let China's Consumers Grow?
Visiting Beijing late last year, the EU’s chief diplomat Josep Borrell complained that China’s trade surplus with Europe was soaring even as its market became tougher for European companies to enter. “Either the Chinese economy opens more, or you may have a reaction from our side,” Borrell warned.
Last week, the response came. The EU wielded new anti-subsidy powers for the first time in a raid on the Warsaw and Rotterdam offices of Nuctech, a Chinese manufacturer of airport and port security scanners. The raid, the latest in a series of trade-related investigations by the EU against Chinese companies, comes as China’s trading partners protest against what they argue is a flood of underpriced exports from the world’s second-largest economy. While Beijing incentivises investment in manufacturing, it does too little to spur household consumption, they charge.
Both inside and outside China, there is a strongly held view among many economists that the country could secure a further period of robust growth if it were able to boost consumption by its own citizens. Indeed, faced with a property crisis, President Xi Jinping has taken some one-off measures to stimulate consumption to offset a fall in domestic demand.
China’s investment to gross domestic product ratio, at more than 40 per cent last year, is one of the highest in the world, according to the IMF, while private consumption to GDP was about 39 per cent in 2023 compared to about 68 per cent in the US. With the property slowdown, more of this investment is pouring into manufacturing rather than household consumption, stimulating oversupply, western critics say. “China is responsible for one-third of global production but one-tenth of global demand, so there’s a clear mismatch,” US secretary of state Antony Blinken said in Beijing last week. (Joe Leahy, Financial Times)
Xi goes on whistle stop Europe Trip soon
President Xi Jinping is making a whistle-stop tour through Europe next week, as ties reach their most fraught point in decades.
Criticism that China is flooding the world with cheap green tech has triggered a litany of probes by the European Union into excessive state subsidies. The bloc used a new law aimed at preventing such practices to raid a Chinese security equipment supplier. Accusations of spying and state-sponsored cyberattacks suggest some countries are increasingly cracking down on other more malign forms of influence. (Bloomberg)
Beyond The Great Wall 🧱
Exploring News About China in Depth
Internal Politics 🏛️
Former vice-minister of justice under investigation
Former Vice Minister of Justice Liu Zhiqiang is being investigated by China's top anti-corruption authorities for alleged serious violations of discipline and the law. Liu, 60, began his career in 1984 before joining the Communist Party in 1986. He has previously held several positions, including foreign affairs director in the Ministry of Public Security and vice governor of Qinghai province. In January 2016, he was appointed deputy minister of Justice. There have been no further details released about the investigation. Read more: China Daily
China’s 3rd aircraft carrier the Fujian begins first sea trial
The Fujian, China's third aircraft carrier equipped with electromagnetic catapults, began its first sea trials from Shanghai's Jiangnan Shipyard. This milestone marks the testing of newly integrated technology and lays the groundwork for the 80,000-ton warship's commissioning. The sea trial will focus on determining the dependability and stability of the carrier's subsystems, such as propulsion and power. The Fujian, with its larger size and advanced features like electromagnetic catapults, is expected to improve the capabilities of the Chinese People's Liberation Army Navy. Read more: Global Times
Death toll up to 48 after road collapse in south China's Guangdong
A tragic highway collapse in Meizhou, Guangdong province, claimed the lives of 48 people and injured many more according to the updated reports of the incident. The collapse, which occurred around 2:10 a.m. on Wednesday on the Meizhou-Dabu Expressway, resulted in a 17.9-meter-long section collapsing, covering an area of 184.3 square meters. Rescue efforts are ongoing. Read more: Global Times
China And The World🌐
Hamas and Fatah talks in Beijing beneficial, discussed next steps: Chinese spokesperson
Representatives from the Palestinian National Liberation Movement (Fatah) and the Islamic Resistance Movement (Hamas) recently visited Beijing to discuss promoting intra-Palestinian reconciliation. The talks, which were held at China's invitation, moved on to discussing the next steps. The two sides expressed their political will to reconcile through dialogue and consultation, and they agreed to continue the dialogue process in order to achieve Palestinian unity as soon as possible. Both factions greatly appreciated China's unwavering support for the Palestinian cause. Read more: CGTN
Solomon Islands lawmakers pick pro-China Jeremiah Manele as PM
Jeremiah Manele, the Solomon Islands' former foreign minister and supporter of close ties with China, has been elected as Prime Minister. Manele's victory in the parliamentary vote represents a continuation of the country's pro-China stance, which follows its recent shift in diplomatic recognition from Taiwan to China. This move, which worries Australia and the United States, demonstrates Manele's determination to align with Beijing's interests. Manele's tenure as foreign minister was characterized by deference to China, which emphasized its support for national infrastructure initiatives. Read more: Nikkei
China-Russia military exercises near Taiwan force US to revise plans, intelligence chiefs say
During testimony before the Senate Armed Services Committee, top US intelligence officials revealed that China's joint military exercises with Russian forces near Taiwan have caused the US to reconsider its defense strategy. Lieutenant General Jeffrey Kruse of the Pentagon's Defence Intelligence Agency stated that the operations have raised concerns about joint-force requirements in the region. Director of National Intelligence Avril Haines emphasized China's desire for Russian cooperation in a variety of fields, prompting new planning efforts within the US government. Read more: SCMP
Top Chinese diplomat holds talks with Argentina's foreign minister
Chinese Foreign Minister Wang Yi met in Beijing with Argentina's Minister of Foreign Affairs, International Trade, and Worship, Diana Mondino, to emphasize China's respect for Argentina's internal affairs and commitment to non-interference. Wang expressed optimism about the tenth anniversary of the two countries' comprehensive strategic partnership, emphasizing the importance of political trust and cooperation in a variety of areas. Mondino echoed Wang's sentiments, reaffirming Argentina's long-standing "China-friendly" policy and willingness to expand cooperation under the Belt and Road Initiative. Read more: Xinhua
Tesla seals deal with Baidu for China maps, whether CEO Elon Musk wants them or not
Tesla has formed a significant partnership with Baidu in China, which contradicts CEO Elon Musk's previous position on high-definition maps. Musk previously dismissed the need for such maps, favoring adaptive artificial intelligence systems instead. However, in order to bring Tesla's Full Self-Driving system to the Chinese market, the company needed to work with a local partner to obtain a mapping license, as required by Chinese regulations. Baidu, one of China's few entities with the required qualifications, was chosen as a partner. This collaboration enables Tesla to incorporate Baidu's lane-level precision mapping into its driving system, ensuring compliance with Chinese regulations and allowing for the collection and monitoring of driving data. Read more: SCMP
Tech war: US to bar Huawei lab, other Chinese telecoms from certifying wireless equipment
The Federal Communications Commission (FCC) is taking steps to prevent Huawei Technologies, ZTE, and other foreign companies that pose national security risks from certifying wireless equipment for the US market. The move comes after the FCC denied Huawei's test lab participation in the equipment authorization program. The proposal seeks to permanently prohibit these entities from participating in the certification process, while also providing tools to protect against security threats. This decision highlights ongoing concerns about the security and supply chain risks posed by certain foreign companies. Read more: SCMP
American on WHO team probing Covid-19 origins in China denies his ‘dangerous research’ caused pandemic
Peter Daszak, president of EcoHealth Alliance and the sole American on a WHO fact-finding mission to China investigating the origins of Covid-19, defended his organization's collaboration with the Wuhan Institute of Virology, claiming it provided direct public health benefits to the United States. Despite accusations of "dangerous research," Daszak emphasized the importance of collaborative global health research in preventing pandemics, despite calls from some US lawmakers to defund EcoHealth and launch a criminal investigation. Democratic members urged caution in addressing funding gaps, while emphasizing the importance of future scientific collaboration. Read more: SCMP
Anti-China sentiment in U.S. grows over past 4 years, Pew survey says
According to a recent Pew Research Center survey, Americans have grown increasingly negative toward China over the last four years, with more than 40% now viewing China as an enemy, up from previous years. Concerns about China's growing power and territorial disputes with neighboring countries contribute to this sentiment, with 81% of respondents having a negative opinion of China. This negative perception has resulted in bipartisan calls for a tougher stance on China in US politics, with Republicans being more critical than Democrats. The survey also reveals increased discrimination against Chinese people in the United States, with some states enacting legislation restricting Chinese citizens' property purchases. Older Americans tend to have more negative attitudes toward China than younger generations. Read more: Nikkei
News From Asia 🌏
Friday
- According to the World Health Organization (WHO), the widespread use of antibiotics during the COVID-19 pandemic may have accelerated the spread of antimicrobial resistance. Read more: The Strait Times
- The Myanmar junta has announced a ban on men applying for jobs abroad. This decision follows the implementation of a military conscription law, which resulted in thousands of people attempting to leave the country. Read more: CNA
- According to Health Minister Datuk Seri Dr Dzulkefly Ahmad, Malaysia's nursing profession is expected to face a 60% shortage by 2030. This shortage is a major concern for the country's healthcare system and its ability to provide high-quality care. Read more: The Star
- According to a recent industry report, startup fundraising in Southeast Asia reached its lowest point in more than five years in the first quarter of 2024. Startups in the region raised $1 billion in equity funding during this period, a 41% decrease from the previous year. Read more: Nikkei
Thursday
- Taiwan's Foreign Minister expressed difficulty in attending this year's WHO annual assembly, citing challenges posed by its exclusion from most international organizations due to China's objections. Read more: Reuters
- Microsoft announced a $2.2 billion investment over four years in Malaysia for cloud and AI infrastructure, including a national AI center. This marks Microsoft's largest investment in Malaysia, aiming to support AI development and inclusive economic growth. Read more: AP
- Datuk Seri Anwar Ibrahim announced a significant pay rise of over 13% for 1.6 million civil servants in Malaysia under the revamped Public Service Remuneration System (SSPA). This increase, the highest to date, aims to ensure a minimum overall monthly income of RM2,000 for civil servants, up from RM1,765. Read more: The Star
- A mass fish die-off occurred in southern Vietnam's Dong Nai province, attributed to a brutal heatwave and reservoir mismanagement. Hundreds of thousands of fish perished due to low water levels caused by weeks of no rain and reservoir renovation efforts gone awry. Read more: CNA
Wednesday
- Eruptions at Indonesia's Mount Ruang volcano led to the closure of several airports and the spread of ash, reaching as far as Malaysia. Over 12,000 locals were evacuated amidst fears of a potential tsunami caused by parts of the volcano falling into the sea. Read more: CNA
- South Korea has engaged in discussions about potentially joining the second stage of the AUKUS defense pact, which involves sharing military technology among the U.S., Britain, and Australia. Read more: The Strait Times
- A recent survey indicates that over 60% of Japanese respondents support the government's initiative to grant more visas for skilled foreign workers, marking a significant increase from 2018. Read more: SCMP
- Binance founder and former chief Changpeng Zhao has been sentenced to four months in prison after pleading guilty to violating U.S. laws against money laundering at the world's largest cryptocurrency exchange. Read more: Bloomberg
Tuesday
- Solomon Islands' Prime Minister Manasseh Sogavare announced that he wouldn't seek another term, concluding his pro-China leadership of over four years after inconclusive elections. Read more: The Japan Times
- Thailand's King has approved retired diplomat Maris Sangiampongsa as the new foreign minister, succeeding Parnpree Bahiddha-Nukara, who resigned unexpectedly. Maris, a former ambassador to Australia and Canada, takes office amid Thailand's intensified diplomatic efforts to address the escalating conflict in neighboring Myanmar. Read more: The Diplomat
- An explosion at an army base in southwestern Cambodia claimed the lives of 20 soldiers, with indications pointing to mishandling of ammunition during transfer as the likely cause, according to a senior military official. Read more: AP News
- A gunman stormed a mosque in Afghanistan's western Herat province, targeting worshippers and killing six people while injuring another. The mosque, serving the Shiite Muslim minority, was reportedly singled out for attack. Read more: DW
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