cross-posted from: https://feddit.org/post/535012

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China’s economy has repeatedly disappointed expectations since the end of the Covid pandemic. Consumption is sluggish, the property crisis is a burden and attempts to achieve growth through exports are being met with punitive tariffs from the rest of the world.

Few Western observers know the world’s second-largest economy better than Joerg Wuttke. In an in-depth conversation with The Market NZZ, the long-serving former President of the EU Chamber of Commerce in Beijing talks about China's growth prospects, the problem of overcapacity in the country and explains who calls the shots when it comes to economic policy.--

Joerg Wuttke:

"The property crisis continues to be the biggest drag [for the Chinese economy]. It had been looming for a long time because it was obvious that property prices were significantly inflated."

[...]

"There is also a special feature of China: everything the government announces with big plans ends up creating overcapacity at some point. The best current example is the automotive sector, where around 140 suppliers are fighting each other. This is eroding the profitability of companies and people are struggling to survive."

[...]

"People [who consider buying property] have become cautious. For years, they thought they could buy a flat and sell it later at a higher price. And now they are suddenly realising that they have lost 30%. The government should do more to counter this, it is not doing a good enough job [...] There is no point in the government lowering mortgage rates if I don’t know whether the apartment I have bought will ever be completed or if I have to assume that prices will continue to fall. There are 90 million empty housing units in the country, which is a huge oversupply.

[...]

"Consumption is also restrained when people see that their own family members are losing their jobs. There are many unemployed people in rural areas who have returned to their villages from the big construction sites. Pessimism, which has never really been an issue in the last thirty years, has spread in the last twelve months."

[...]

"Nobody knows for sure [how high the unemployment is]. It is a question of definition, because in the official statistics you are apparently not considered unemployed if you work even one hour a week. Youth unemployment climbed to almost 30%, but then the government changed the statistics. However, you can see a clear trend if you look at the purchasing managers’ indices [...] Companies are holding back on hiring, especially in the private sector.

[...]

"This is the first Third Plenum [which takes off on July 15] that has not triggered any great expectations. Which probably means that markets will hardly be disappointed if not much comes out of the session. We will certainly hear warm words, especially addressed towards foreign companies [...] they are likely to announce plans to reduce protectionism between [Chinese] provinces and open up the domestic market. A market struggling with overcapacity leads to provinces closing themselves off from each other."

[...]

"China accounts for 30% of total global production, but it only accounts for 14% of global consumption. That is a huge imbalance. President Xi Jinping has focussed on the manufacturing sector because he hopes it will also boost innovation. But launching big plans in China always leads to everyone aiming for the goal, everyone seeing a lot of money, and then everyone doing the same thing in 31 provinces and regions. The country has more than 150,000 state-owned enterprises. They all remain on the market, even though many of them are losing money. [...] This [Chinese] economy has a gigantic skew. There needs to be consolidation, and that would require political courage."

[...]

"Probably about ten [among the 140 actors in the automotive sector are profitable]. The top dog is BYD, Tesla is also doing very well, they both have capacity utilisation rates of almost 100%. However, a third of the suppliers have a capacity utilisation of less than 20%. These companies are making huge losses, but they are being concealed and absorbed by local governments."

[...]

"This consolidation [consolidation of the Chinese economy] will be much more painful. It won’t be easy in a country that doesn’t have a well-developed social safety net."

[...]

"Xi [who doesn’t have much sympathy for social security and doesn’t want a welfare state] once told the Danish prime minister that he could not understand these lazy Europeans. In China, people have to work hard. He seems like someone from another time. He tells unemployed young people that they should just go to the countryside and help the farmers. There's a huge generation gap in the country."

[...]

"I think the tariffs [imposed by the EU on Chinese electric Vehicles] are rather low. BYD’s share price rose by 9% when they were announced. That really says it all. The tariffs are not designed in such a way that the Chinese can no longer sell cars in Europe. But this will be an issue worldwide: the US is imposing 100% import duties on EVs, Turkey has added 40%, Brazil is imposing tariffs in the steel sector. There will be more to come. We have to be prepared for the fact that this flood of exports from China will also trigger counter-pressure in the so-called Global South. The playing field for China is getting narrower and narrower.

cross-posted from: https://feddit.org/post/509125

• South African retailers have urged the government to plug tax loopholes that they fear are being used by Chinese e-commerce platform Temu, and Shein, another Chinese online platform,

• Etienne Vlok, a national industrial policy officer for Southern African Clothing and Textile Workers Union, said the government should consider urgent changes to tax rules on small items to ensure fair competition for local businesses.

• Temu, the online shopping juggernaut backed by China’s PDD Holdings Inc. has offered huge discounts in South Africa since its launch in January. The firm has expanded its global footprint to 49 countries and recently took out ads at the Super Bowl to try and sustain growth among US consumers.

cross-posted from: https://feddit.org/post/508959

Companies consider moving Taiwanese employees out of China after Beijing said it could impose the death penalty on “die-hard” Taiwanese independence advocates

• China's new guidelines have caused some Taiwanese expatriates and foreign multinationals operating in China to scramble to assess their legal risks and exposure. “Several companies have come to us to assess the risks to their personnel,” said James Zimmerman, a Beijing-based partner at the Perkins Coie law firm.

• Zimmerman, who declined to identify the companies or industries for confidentiality reasons, added: “The companies are still concerned that there may be some gray areas, such as whether a benign social media post or voting for a particular political party or candidate in Taiwan elections could be interpreted as engaging in pro-independence activities."

• As of 2022, about 177,000 Taiwanese were working in China, according to the most recent Taiwanese government survey. Taiwanese staff are employed by many multinationals in China, given their linguistic abilities and cultural familiarity with the country.

• Many more work for the myriad Taiwanese firms that operate in China and have, by the Taiwanese government’s estimate, invested more than US$200 billion since 1991, helping fuel China’s growth to become the world’s second-biggest economy.

• Some foreign firms operating in China have held meetings with employees on safety, said the two executives, who asked not to be named due to the sensitivity of the matter.

-Japan confirmed that the Chinese survey ship Xiang Yang Hong 22 set up the buoy in mid-June while monitoring the vessel as it sailed through Japan's exclusive economic zone (EEZ) in the East China Sea, a government source said. The open-sea area in question is surrounded by Japan's EEZ.

• Japan has urged China not to undermine Japan's maritime interests. It's Chief Cabinet Secretary Yoshimasa Hayashi told a news conference it was "regrettable" that China has set up a small buoy in the waters off Japan's western main island of Shikoku and north of the southernmost Okinotori Island "without explaining its purpose and other details."

• Chinese Foreign Ministry spokeswoman Mao Ning said the buoy, which is to monitor tsunami, was set up in the high seas "for the purposes of scientific research and serving public good.

• Last July, China installed another buoy inside Japan's EEZ near the Tokyo-controlled, Beijing-claimed uninhabited Senkaku Islands in the East China Sea, prompting Japan to lodge a protest and demand its immediate removal.

• Mao said that as the islands, which Beijing calls Diaoyu, are part of China's territory and its surrounding waters are under the country's jurisdiction, it is "legitimate and lawful for China to set up hydrological and meteorological data buoys in those areas."

• China has been intensifying its military activities and maritime assertiveness in the regional waters, with Japan protesting against repeated intrusions by Chinese ships into Japanese waters around the Senkakus.

cross-posted from: https://feddit.org/post/487403

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The French organizers of the Festival Off Avignon, one of the biggest performing arts festivals in the world, said that they received protests and threats from China after selecting Taiwan as its guest of honour country for this year's event.

According to Harold David and Laurent Domingos, co-presidents of the Avignon Festival & Compagnies (AF&C), China's embassy in Paris threatened to withdraw from the event if Taiwan was not dropped as its guest of honour country (‘pays invité d'honneur’).

• Domingos said that they had anticipated such a reaction. “We are not stupid, we understand geopolitics,” he said, adding that they have to bear the responsibility for their choice. While the festival’s board has not made a final decision, David and Domingos said they believed the event, which began on Wednesday, should maintain its independence, autonomy, variety and freedom, and keep Taiwan as the guest of honor.

• Domingos said that the festival is also planning events for the 60th anniversary of the establishment of diplomatic relations between France and the People’s Republic of China. The two developments do not conflict with each other, he said.

• Taiwan first participated in the Festival Off Avignon 17 years ago, and the country’s selection as a guest of honor was a tribute to its past contributions to the event, David said. The traits Taiwan shares with the festival include diversity, openness to the world, creativity and freedom of speech, he added.

• Domingos also lauded the creativity that Taiwan has brought to the festival, which runs until July 21. “Taiwan identifies itself with its culture. It is not recognized by the United Nations and many countries as a ‘country,’ so it defines itself with its cultural identity,” he said, adding that the festival itself was a field to exhibit cultural identity.

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• Communist-run Laos has come to the fore after it opened a high-speed rail line with China in 2021 that cost the landlocked country about $6 billion. While the development is seen by many as the start of a ramp up in infrastructure that directly connects China with Southeast Asia, it has raised concerns of a build-up in debt for Laos and other smaller countries.

• China is by far Laos’ biggest creditor, accounting for about half of the $10.5 billion in external government debt. The tiny nation had $13.8 billion in total public and publicly-guaranteed debt at the end of last year, amounting to 108% of its gross domestic product.

• Laos’ external debt payments in 2023 reached $950 million, almost double the amount compared to 2022,, making the country defer $670 million in principal and interest payments. The World Bank has said in the past that such moves have provided temporary relief in recent years.

• Laos' development is seen by many as a further chapter of China's 'debt-trap diplomacy' as Beijing offers developing countries financial loans under often opaque condition, leaving them grappling with repayments while it supports China’s efforts to expand its economic and political influence in foreign countries.

• For example, Sri Lanka fell into default for the first time in its history back in 2022 after its foreign reserves dwindled. Last month the South Asian nation said it reached final restructuring agreements worth $10 billion, including with an Official Creditor Committee of bilateral lenders and China’s Exim Bank. Sri Lanka's port, however, is now owned by China.

• China dismissed the “debt-trap diplomacy” allegations.

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Taiwan said the Chinese coast guard boarded a Taiwanese fishing boat Tuesday before steering it to a port in mainland China, and demanded that Beijing release the vessel.

The Tachinman 88 was intercepted by two Chinese vessels Tuesday evening near the Kinmen archipelago, which lies a short distance off China’s coast but is controlled by Taiwan, Taiwanese maritime authorities said in a statement.

Taiwan dispatched three vessels to rescue the Tachinman 88, but the one that got close to the fishing boat were blocked by three Chinese boats and told not to interfere, the statement said. The pursuit was called off to avoid escalating the conflict after Taiwan’s maritime authorities detected that four more Chinese vessels were moving closer, the statement added.

“The Coast Guard calls on the mainland to refrain from engaging in political manipulation and harming cross-strait relations, and to release the Tachinman ship and crew as soon as possible,” the statement read.

The boat had six crew onboard, including the captain and five migrant workers, according to Taiwan’s official Central News Agency. The vessel was just over 20 kilometers (12 miles) away from Jinjiang in mainland China when it was boarded, Taiwanese authorities said.

China claims self-governing Taiwan as its territory and says the island must come under its control. The Chinese military regularly sends warplanes and ships toward the island and staged a large exercise with dozens of aircraft and vessels in May.

Fishermen from both Taiwan and China regularly sail the stretch of water near the Kinmen archipelago, which has seen a rise in tensions as the number of Chinese vessels — including sand dredgers and fishing boats — have notably increased in the area.

In February, two Chinese fishermen were drowned while being chased by Taiwan’s Coast Guard off the coast of Kinmen, prompting Beijing to step up patrols in the waters.

cross-posted from: https://feddit.org/post/459808

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“What [authoritarian] regimes have in common is their fear of a well-informed public,” Christoph Jumpelt, the head of the international relations unit at Germany’s public broadcaster, Deutsche Welle, said this week in Taiwan.

International media groups like AP, Reuters and PA Media Group cooperate with China's state-controlled agency Xinhua for being able to operate within the country. It should be obvious that such a conditionality has no place in what they say is a “purely commercial” arrangement, not in the least as this does a huge injustice to the thousands of journalists who struggle each day to report the facts.

• Last month Fu Hua, President of China’s official Xinhua News Agency, which sits directly under the country’s State Council, made a whirlwind tour from New York to London, meeting with top executives from AP, Reuters, and PA Media Group, to foster long-standing business relationships.

• Such deals with Xinhua should invite tougher questions about how international media companies with a stated commitment to professional standards should deal with Chinese media giants whose sole commitment — crystal clear in the country’s domestic political discourse— is to strengthen the global impact of Party-state propaganda.

• Xinhua's Fu is not a champion of independent media values, or a partner in tackling the information challenges of the future. Prior to his role at Xinhua, Fu served as a deputy minister of the Chinese Communist Party’s Central Propaganda Department. His agenda is that of China’s ruling Chinese Communist Party, the CCP. Plain and simple.

• The partnerships with Western media are part of a broader effort by Xinhua to deepen its global media influence, curtailing criticism of the Chinese government and shaping international discourse that portrays the CCP in a positive light. And yet, year in and year out, Western media executives insist, even against the substance of their own statements, that this type of cooperation is just normal business.

• If it is true, for example, that AP “publishes none of the stories" by Xinhua as it claims, what then is the point of such empty formalities? “Like most major news agencies,” said a former agency head, “AP has an agreement with state-run media in China that allows AP to operate inside the country.”

• And there we have the crux. AP’s relationship with Xinhua, in place since 1972, forms the political foundation on which AP and other major news agencies, including Reuters, are able to operate in China.

• It should be obvious such conditionality has no place in any “purely commercial” arrangement. And as they obscure the true nature of the arrangement, news outlets do a huge injustice to the thousands of journalists who struggle each day to report the facts.

• Western outlets that claim to uphold professional values need to decide where they stand while insisting on the charade of standing with Xinhua, shaking hands and signing on the dotted line.

• Indonesia is preparing to impose tariffs and use other means to protect its textile industry from imports from China, the latest in a series of countries and blocs such as the US and the European Union, which are responding to the flood of goods out of the world’s largest manufacturing nation.

• After the government in Jakarta rolled back some import restrictions earlier this year, protests from thousands of textile workers are pushing the government to introduce new curbs. Indonesia imported almost 29,000 tons of imports of woven fabrics made from artificial filament yarn last year. Goods from China accounted for most of that.

• It’s unclear whether the government is considering imposing only safeguard duties or also other tariffs. "We have actually provided many fiscal instruments to protect the textile industry, including safeguard duties and anti-dumping duties, which are usually related to unfair trade that harm the domestic industry,” said Febrio Kacaribu, head of fiscal policy agency at the finance ministry.

• Indonesia has maintained an overall trade surplus for the last four years. However, the surplus with China flipped to a deficit in May, driven by imports of machinery and plastic goods.

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• Nepal has shied away from signing a plan to implement China’s ambitious Belt & Road Initiative (BRI) in the Himalayan nation. Resisting immense pressure from Beijing, Nepal’s Prime Minister Pushpa Kamal Dahal refused to greenlight the signing that would have paved the way for the implementation of nine mega and more than a dozen major BRI projects in Nepal.

• That’s because soon after Nepal signed the BRI framework agreement in May 2017, India launched a massive but silent campaign to educate and explain Nepal’s political leadership, economists, bureaucrats, diplomats, academia, media and civil society leaders the pitfalls of China’s BRI to them, making Nepal’s top politicians and others fully aware of China’s sinister plan to ensnare nations into a debt trap through the BRI.

• PM Deuba eventualky told China that Nepal would only agree to a small component of the cost of BRI projects in the form of loans. However, the interest on such loans should not be more than what multilateral lending agencies like the World Bank and Asian Development Bank (ADB) charge for their loans (one per cent per annum).

• This was not acceptable to China which charges more than two per cent on the loans it gives to other countries to finance BRI projects. Also, China insists on the contracts for these projects being awarded only to Chinese companies and refuses to do away with or water down penalty clauses (in case of failure to repay the loans on time).

What also worked against China was Nepal’s experience with the Pokhara International Airport which cost US $ 305 million. China’s Exim Bank provided a loan of about US $ 215 million at 2 per cent interest. Chinese firms were awarded contracts for construction and technical works.

Allegations of shoddy construction, inflated costs and mismanagement by the Chinese have fuelled public anger against China in Nepal. The airport has turned into a huge liability (read this) since no commercial and scheduled flights are operating from there.

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Over the past 40 years, the Chinese government has carried out several programs to reduce and eliminate extreme poverty in the Country. On 25 February 2021, the National media announced that extreme poverty had been almost eliminated in China.

There were, however, many human rights issues that came up along the way. And many even argue some measures of China's poverty reduction strategy should rather be viewed as a way to gain leverage in its border disputes with its neighbors.

• The Targeted Poverty Alleviation (TPA) program was officially implemented in 2015, it was structured to follow the whole process: from poverty identification to poverty exit.

• TPA developed five core methods to lift the poor out of poverty: industry, relocation, ecological compensation, education, and social assistance. Despite its innovative approach to eradicating extreme poverty, TPA methods have some harsh side effects, especially for ethnic minorities.

• the relocation strategy is not new to the Chinese government. However, after launching the TPA, it was mainly directed toward regions where most people belong to China’s ethnic minorities. Tibet is one of the regions where the mass relocation programs are more controversial, mainly because of the numerous human rights violations perpetrated by China’s government against Tibetans since the creation of the Tibet Autonomous Region (TAR) in 1951.

• the PRC is carrying out a “Sinicization” campaign whose objective is to eradicate any trace of Tibetans’ autonomy’s desire. Mass relocation programs are part of this strategy, even if the government maintains that it is the most effective strategy to reduce poverty and, at the same time, to stop environmental degradation.

• Tibetans are moved to locations where they cannot continue their former livelihoods or lifestyles. Often, for example, herders are moved to farming areas and farmers are moved to urban areas where they will be entering the labor market without the experience to do so. Part of the TPA indeed is to provide relocated people with initial subsidies and social assistance to facilitate their adjustment to new lifestyles, but for what concerns Tibetan herders, this kind of assistance is not enough.

• If Tibetans do not agree to relocate, authorities are allowed to exert different forms of pressure that range from intrusive home visits to implicit threats. After the relocation, the Chinese government demolishes their former homes once they have been relocated to prevent them from coming back. The UN Basic Principles and Guidelines on Development-based Evictions and Displacement provides that states should, when circumstances allow, prioritize the rights of restitution and return.

• In recent years, the relocation of Tibetans has been accurately directed towards villages along the contested territories between China and its neighbors. It involved building 628 border villages called “well-off border defense villages” which were selected for their remote location, very sparse population, and poor conditions.

• For China’s government, these villages have multiple objectives: reduce the poverty rate in the country, and keep an eye on the movements of populations and activities across the border. Moreover, the location of these villages, and the development of bridges and railway lines in the same regions, should be viewed as a way to gain leverage in its border disputes with its neighbors.

• China is particularly concerned about one of its neighbors: India. Although trade between the two nuclear powers surpassed $136 billion in 2023, relations between Beijing and New Delhi remain tense. China reclaims large parts of Indian territory, including the entire state of Arunachal Pradesh which was recently renamed “Southern Tibet” by China’s government.

• The response of the newly elected National Democratic Alliance (NDA) government, led by Prime Minister Narendra Modi, was the renaming of 30 places in Tibet, signaling its willingness to confront China, at least theoretically. Indian and Chinese troops stationed along the border regularly engage in conflict, sometimes resulting in casualties.

• As China focuses more on border defense and security in Tibet, the situation between India and China at the borders is likely to escalate and possibly result in more clashes. China is investing heavily and strategically in border-related infrastructure and in relocating and re-educating residents. The Indian Government may follow suit and bolster its borders by investing more, securing them, and ensuring their safety.

• For India, the Himalayan problem is a bilateral affair, but recently Modi seems more willing to let China know that he is looking for new allies. Modi thanked Lai Ching-te, the newly elected President of Taiwan, for his message of congratulations after being re-elected. Nevertheless, the Taiwan-India relationship remains unofficial, and their political connections seem to be directed at deepening economic cooperation.

cross-posted from: https://feddit.org/post/380048

Taiwan's government raised the travel alert for Mainland China, Hong Kong and Macau to “orange” level and advised people to avoid non-essential travelling. The Council claimed that because the Mainland China, Hong Kong and Macau have continued to amend or issue legal documents relating to national security in recent years, there are reported cases in which Taiwanese travelling to mainland China have been subjected to unlawful detention, retention and interrogation, as the Straits Exchange Foundation deputy secretary general Tsai Meng-chun suggested.

One week ago, China published new judicial guidelines to introduce the death penalty for “particularly serious” cases involving supporters of Taiwanese independence, which included severe punishments for activities deemed as fragmenting the country or inciting secession. According to the Council, this poses a serious threat to the personal safety of Taiwanese travelling to mainland areas. Hence, it strongly recommended that Taiwan people should not enter China mainland, Hong Kong and Macau unless it is necessary, and should avoid discussing sensitive issues, photographing military sites, or carrying books on politics, history and religion.

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Archived version

A surge of Chinese plastic supply is threatening to overflow in the face of weak domestic demand, morphing into a fresh trade challenge for the rest of the world.

“Everyone in China has this notion that if they are fast enough, if they are the first in the industry, able to burn cash long enough, then they will become the survivor that takes market share. And then they can raise the price,” said Ms Vivien Zheng, Asia chemicals analyst with Bloomberg Intelligence.

• Plants have mushroomed along the country’s eastern coast over the last decade, built in a race to satisfy China’s hunger for plastic and to help refiners counter an expected downturn in transport fuels, as electric vehicles take off. Vast volumes and lacklustre post-pandemic demand mean margins are paper thin – but companies have kept producing, hoping to cling to existing market share.

• “This is yet another example – after steel and solar panels – where China’s structural imbalances are clearly spilling over into global markets,” one expert for Chinese industries said. In an echo of its predicament from batteries to green-energy technology, the world’s second-largest economy is staring down a situation of dramatic industrial excess.

• Factories currently navigate the supply surge with brief shutdowns and low run rates, but as production capacity continues to be added, petrochemical executives and sector analysts say surpluses will grow – enough in many products to turn China into a significant exporter, often selling into a glut and potentially exacerbating existing trade tensions.

• “China’s substantial investments between 2020 and 2027 have reshaped global supply dynamics, leading to a structural surplus in Asia and persistent low or negative profit margins,” said Ms Kelly Cui, principal petrochemicals analyst at Wood Mackenzie. The consultancy estimates that almost a quarter of global ethylene capacity is at risk of closure, even as China is still adding more.

• Between 2019 and the end of 2024, China will have completed construction of so many plants to turn crude oil and gas into products such as ethylene and propylene – materials behind everything from plastic bottles to machinery – that nameplate capacity is now equal to Europe, Japan and South Korea combined, according to the International Energy Agency (IEA).

• Part of the reason is that smaller plants do not require approvals from Beijing, as large refineries do. The local authorities were quick to see the opportunity to use cheap land and fiscal perks to encourage job creation and investment. All sought to feed demand for a plastic known as polypropylene, used for plastic packaging, automobile parts and electrical appliances.

• But as supply flowed, domestic demand faltered. Now the trouble is that financial and market-share pressures are also adding up.

• China is already a net exporter of polyester products such as PVC and PET, used in clothing or food containers, shipping them to countries like Nigeria, Vietnam and India, according to an expert, again creating or worsening trade surpluses.

• Most of the new facilities in China were installed in the last three or five years despite slowing demand, which makes this economic development harder and harder to sustain.

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• Communities in Indonesia’s Dairi district continue to protest a zinc and lead mine being developed by a Chinese-backed company.
• They warn the PT Dairi Prima Mineral (DPM) mine poses unacceptable risks to human life and the environment, given the potential for its waste dam to collapse in the earthquake-prone region.
• There are 11 villages located around or downstream of the proposed tailings dam, making the prospect of its collapse potentially disastrous. Some homes and houses of worship lie less than a kilometer (0.6 miles) from the dam, while an entire village of 2,010 people, called Pandiangan, is just 1.8 km (1.1 mi) from the dam.
• This would make the project illegal if it was built in China, since that country’s regulations prohibit the construction of a tailings dam within a kilometer of a populated area, according to Emerman.
• These concerns are borne out in a series of independent analyses of the project’s environmental impact assessment, which experts say fails to live up to the standards the developers claim to follow.
• Despite the questions over the assessment, the Indonesian government has issued environmental approval for the project, which local communities are now challenging at the Supreme Court.

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• The Chinese government’s rejection of recommendations to end its deepening human rights crisis reflects its disdain for international human rights reviews at the United Nations, human rights nongovernmental organizations said in a joint statement released on June 25, 2024.
• In a disingenuous effort to paper over its refusal to engage to improve its appalling record made clear by latest Universal Periodical Review (UPR) in January 2024, the Chinese government said it would accept 290 of the 428 recommendations, partially accept 8, note 32, and reject 98 of the recommendations made. The 290 accepted ones include those the government said it “accepted and being implemented” and those “accepted and already implemented.”
• However, none of the “accepted” recommendations address concerns raised by UN member states about crimes against humanity, torture, forced disappearance, persecution of human rights defenders and journalists, or other grave and well-documented violations.
• In this context, the numerous acceptances by the Chinese government does not mean actual intention to improve its rights record. No one should confuse a high number of accepted recommendations with any real commitment by Beijing on human rights.
• Beijing’s responses to UPR recommendations also include hostility towards the process and towards UN human rights mechanisms. The government has challenged the authority of the UPR to address topics Beijing insists are a matter of “sovereignty,” and disparaged the professionalism of UN human rights experts.
• The Chinese government also falsely proclaimed the August 2022 OHCHR report on human rights abuses in Xinjiang, which that office alleged may constitute crimes against humanity, as “completely illegal and void.”

JD.com founder Richard Liu warned employees against prioritizing work-life balance during a recent video conference, stating those who "put life first and work second" were not welcome at the company. This stance reflects a broader trend in China's tech sector as executives face slowing growth and increased competition.

Major tech firms, including Alibaba and Tencent, have cut tens of thousands of jobs since 2021. Companies are now seeking younger, cheaper workers and demanding longer hours from existing staff. Pinduoduo, an e-commerce group known for its high productivity and grueling work culture, is seen as a model by some in the industry. In 2021, two Pinduoduo employees died in incidents linked to overwork by colleagues.

Older tech professionals, typically over 35, face the greatest risk of redundancy and struggle to find new positions. Employers often view them as expensive and less flexible due to family responsibilities. A 2023 survey of 2,200 professionals in China's largest cities revealed widespread anxiety about career prospects and work-life balance. Many in the industry report experiencing depression and high stress levels.

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• A residence priced $15 million was sold within hours
• Buyers snatch 200 large flats priced from nearly $5 million

Shanghai’s luxury real estate market is a bright spot in China’s bleak property sector. It’s the only one among the country’s mega cities that’s still attracting people to put down money in an asset class that has otherwise been abandoned.

[...] The move is driven by rich Chinese — many dwelling in the Yangtze River Delta region that Shanghai is part of — who are parking their money only in surefire investments [...] buyers are a mixture of locals and outsiders, many from the neighboring Zhejiang and Jiangsu provinces, according to sellers and developer advisers. Shanghai allows non-local homebuyers if they’ve paid income taxes for three years.

[...] Shanghai’s more affluent and entrepreneurial demographic is helping with the rebound, whereas the capital has more people working for state-owned enterprises and the government, meaning they already have access to government-subsidized housing.

[...] the trend is expected to cool down in the second half, after pent-up demand is released, according an analyst.

Zhang Jianchun (张建春), a deputy minister at the CCP’s powerful Central Propaganda Department, was accused on Friday of “severe violations of discipline and law” — a signal that a corruption investigation is underway.

[...]

Zhang, 59, had a lengthy career in the CCP’s Organization Department, the body that essentially serves as the human resources heart of the Party, arranging for official appointments and personnel assignments.

[...]

In the wake of the 2022 CCP congress he presided over a gathering of publishing houses to stress the importance of releasing published teaching materials about Xi Jinping’s political report. The month before he had officiated at a gathering of Party-run newspaper publishers, where he blandly emphasized the importance of adhering to the leadership of “comrade Xi Jinping as the core.”

[...]

Prior to the news of his downfall, Zhang Jianchun had not made a public appearance in two months.

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Lai Ching-te once again called on China to accept the existence of Taiwan, a self-governing democracy that is claimed by Beijing but where its courts have no jurisdiction.

Democracy is not a crime and autocracy is the real “evil,” Taiwan President Lai Ching-te said Monday after China threatened to impose the death penalty in extreme cases for “diehard” Taiwan independence separatists.

China, which views Taiwan as its own territory, has made no secret of its dislike of Lai, who took office last month, saying he is a “separatist,” and staged war games shortly after his inauguration.

On Friday, China ramped up its pressure on Taiwan by issuing new legal guidelines to punish those it says support the island’s formal independence, though Chinese courts have no jurisdiction on the democratically governed island.

Asked about China’s move at a news conference at the presidential office in Taipei, Lai first reiterated his sympathy for recent flooding in southern China before responding.

“I want to stress: Democracy is not a crime; it’s autocracy that is the real evil. China has absolutely no right to sanction Taiwan’s people just because of the positions they hold. What’s more, China has no right to go after Taiwan people’s rights across borders,” he said.

According to China, anyone who does not uphold “reunification” is therefore a Taiwan independence supporter, Lai added.

“I also want to call on China to face up to the existence of the Republic of China and have exchanges and dialogue with Taiwan’s democratically elected, legitimate government,” he said, using Taiwan’s formal name. “If this is not done, relations between Taiwan and China will only become more and more estranged.”

Taiwan said that since Thursday, there has been a sharp increase in Chinese military flights as Beijing carried out a “joint combat readiness patrol” near the island.

From Thursday to Sunday, Taiwan says it detected 115 Chinese military aircraft operating nearby, getting as close as 31 nautical miles from the southern tip of the island.

Taiwan has said that for the past four years China has carried out regular military activity around the island as part of a “gray zone” pressure campaign.

Lai rejects Beijing’s sovereignty claims and says only Taiwan’s people can decide their future. He has repeatedly offered talks with China but been rebuffed.

China says any move by Taiwan to declare formal independence would be grounds to attack the island.

The government in Taipei says Taiwan is already an independent country, the Republic of China, and that it does not plan to change that. The Republican government fled to Taiwan in 1949 after losing a civil war against Mao Zedong’s Communists.

Lai also faces domestic challenges, as his Democratic Progressive Party (DPP) lost its majority in parliament in the same election in January that brought him to power.

Speaking at the same news conference, Lai said he would ask the constitutional court to stay a package of contested parliament reforms the opposition has passed and consider whether they comply with the constitution.

The opposition says the reforms, which among other things criminalize contempt of parliament by government officials, are needed to bring more accountability, but the DPP says they were forced through without proper discussion.

• Citizens express concern over downturn as pressures mount
• Flurry of stabbings unusual in country where violence is rare

The reaction of Chinese social media users to a spate of recent violent attacks has exposed widespread discontent about the nation’s downturn, as economic pressures mount.

Shanghai police reported a stabbing Wednesday morning in one of the city’s metro stations, which — like other subway lines in major Chinese cities — has security checks at its entrances. The suspect was detained after injuring three people and the case is under investigation, police said in a statement.

In a country where violence is relatively rare, the incident became a top trending item on social media platform Weibo, garnering some 164 million reads with users speculating on the attacker’s motive. Some suggested the culprit was a stocks investor, a group battered during China’s $7 trillion market meltdown earlier this year.

“The pressure of this economic environment is cascading down to everyone, who may be pushed to the brink by a slight change in circumstances,” one user wrote. “Don’t provoke or bully others; you don’t know where their limits of outbursts are. Don’t let yourself become a victim of the economic climate.”

Another user posted: “When the economy is bad, social problems grow, people are becoming more aggressive.”

Police didn’t provide details of the culprit’s motive, and it was unclear if the attacks represented a surge in such incidents. But the public reaction underscored growing fears over China’s economic downturn, as a slump deepens in the property market where the bulk of household wealth is stored.

“It’s possible the attackers were themselves suffering from the economic slowdown and such anxiety,” said Hanzhang Liu, an assistant professor of political studies at Pitzer College in California. “But it’s even more likely that people are projecting their own anxiety when trying to understand why these incidents happen.”

Protests over the economy, especially the housing crash, have become more frequent and made up 80% of publicly recorded dissent last year, according to Freedom House’s China Dissent Monitor. Almost a third of office workers saw their salaries fall in that period, according to recruitment platform Zhaopin.

The Shanghai incident followed similar reports from across China. Four teachers from a US college were stabbed by a local man in the northeastern city of Jilin last week. The chairperson of a political consultative body in a county in Shanxi was killed at the start of June in a dispute over the cleanup of illegally-occupied state housing. In May, two died in another knife attack in a primary school in the southeastern Jiangxi province.

The Jiangxi attack was viewed more than 390,000 times on Weibo, with one user asking for tougher penalties as “the economy slows down, life becomes more torturing, and crazy people become more frequent.”

While authorities did not provide details of the motives for the Jiangxi and Shanghai attacks, one of the teachers injured in Jilin told Iowa Public Radio that the attacker was “unemployed and down on his luck,” attributing that information to local police.

China has long touted itself as the world’s safest nation. Authorities have rolled out at least four rounds of “strike hard” anti-crime campaigns since the 1980s. The Public Security Ministry said at a press conference in May that social order had been steadily improving over the past five years, with severe violent crime dropping 10.7% in 2023 compared to 2019.

That makes rare outbursts of public violence stand out. People across China were outraged two years ago, for example, when video clips appeared online showing men beating female diners at a barbecue restaurant.

Socially Disadvantaged

Chinese authorities are aware of the link between economic changes and rises in violence. The Guangdong Police College analyzed 140 high-profile cases of violent attacks from 2000 to 2021, concluding last year that most of the culprits didn’t have a prior criminal record.

Instead, China’s rapid economic transformation had put some segments of society at more of a disadvantage, leading them to vent their frustration through violence, according to the research. Due to tight controls of guns and explosives in China, knifing and car-ramming incidents have become more common.

Despite severe crime falling, Chinese authorities listed the prevention of extreme violence as a top priority for law enforcement in a work plan last year. The country is entering a time with a “large amount of social conflict and disputes that are difficult to discover, prevent and handle,” China’s security czar Chen Wenqing stressed in December.

Mental Health Issues

Beijing has even mobilized ordinary people to help stabilize society. Known as the “Fengqiao experience,” that system aims to get local residents to resolve conflicts at the grassroots level to prevent them from spilling over into broader troubles that bubble up to higher level officials.

The ruling Communist Party also created a social work department last year to strengthen its grip on community organizations. The low-key body, which now leads the national ombudsman office, vowed to help better coordinate social relationships and resolve conflicts in an article in March.

Mental health issues that built during China’s three years of Covid isolation, are being compounded by economic pressures including high youth unemployment, said Lynette Ong, professor of political science at the University of Toronto, who’s also a senior fellow at the Asia Society Policy Institute’s Center for China Analysis.

“Acts of random violence could be seen as expression of pent-up social grievances in a high-pressured society,” she added.

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Even by conservative measures, researchers say that China's subsidies green-tech products such as battery electric vehicles and wind turbines is multiple times higher compared to the support granted to countriesin tbe European Union (EU) and the Organisation for Economic Co-operation and Development (OECD).

The researchers conclude that the EU should use its strong bargaining power due to the single market to induce the Chinese government to abandon the most harmful subsidies.

TLDR:

• Quantification of overall Chinese industrial subsidies is difficult due to "China-specific factors”, which include, most notably, below-market land sales, but also below-market credit to state-owned enterprises (SOEs), support through state investment funds, and other subsidies for which there are no official numbers.
• Even when taking a conservative approach and considering only quantifiable factors of these subsidies, public support for Chinese companies to add up to at least €221.3 billion, or 1.73% of GDP in 2019. Relative to GDP, public support is about three times higher in China than in France (0.55%) and about four times higher than in Germany (0.41%) or the United States (0.39%).
• Large industrial firms such as EV maker BYD are offered disproportionately more support. The industrial firms from China received government support equivalent to about 4.5% of their revenues, according to a research report. By far the largest part of this support comes in the form of below-market borrowing.

Regarding electrical vehicles, the researchers write:

China’s rise to the world’s largest market and production base for battery electric vehicles has been boosted by the Chinese government’s longstanding extensive support of the industry, which includes both demand- and supply-side subsidies. Substantial purchase subsidies and tax breaks to stimulate sales of battery electric vehicles (BEV) are, of course, not unique to China but are also widespread within the EU and other Western countries, where (per vehicle) purchase subsidies have often been substantially higher than in China. A distinctive feature of purchase subsidies for BEV in China, however, is that they are paid out directly to manufacturers rather than consumers and that they are paid only for electric vehicles produced in China, thereby discriminating against imported cars.

By far the largest recipient of purchase subsidies was Chinese NEV manufacturer BYD, which in 2022 alone received purchase subsidies amounting to €1.6 billion (for about 1.4 million NEV) (Figure 4). The second largest recipient of purchase subsidies was US-headquartered Tesla, which received about €0.4 billion (for about 250,000 BEV produced in its Shanghai Gigafactory). While the ten next highest recipients of purchase subsidies are all Chinese, there are also three Sino-foreign joint ventures (the two VW joint ventures with FAW and SAIC as well as SAIC GM Wuling) among the top 20 purchase subsidy recipients.

Hacking group RedJuliett compromised two dozen organisations in Taiwan and elsewhere, report says.

A suspected China-backed hacking outfit has intensified attacks on organisations in Taiwan as part of Beijing’s intelligence-gathering activities on the self-governing island, a cybersecurity firm has said.

The hacking group, RedJuliett, compromised two dozen organisations between November 2023 and April of this year, likely in support of intelligence collection on Taiwan’s diplomatic relations and technological development, Recorded Future said in a report released on Monday.

RedJuliett exploited vulnerabilities in internet-facing appliances, such as firewalls and virtual private networks (VPNs), to compromise its targets, which included tech firms, government agencies and universities, the United States-based cybersecurity firm said.

RedJuliett also conducted “network reconnaissance or attempted exploitation” against more than 70 Taiwanese organisations, including multiple de facto embassies, according to the firm.

“Within Taiwan, we observed RedJuliett heavily target the technology industry, including organisations in critical technology fields. RedJuliett conducted vulnerability scanning or attempted exploitation against a semiconductor company and two Taiwanese aerospace companies that have contracts with the Taiwanese military,” Recorded Future said in its report.

“The group also targeted eight electronics manufacturers, two universities focused on technology, an industrial embedded systems company, a technology-focused research and development institute, and seven computing industry associations.”

While nearly two-thirds of the targets were in Taiwan, the group also compromised organisations elsewhere, including religious organisations in Taiwan, Hong Kong, and South Korea and a university in Djibouti.

Recorded Future said it expected Chinese state-sponsored hackers to continue targeting Taiwan for intelligence-gathering activities.

"We also anticipate that Chinese state-sponsored groups will continue to focus on conducting reconnaissance against and exploiting public-facing devices, as this has proved a successful tactic in scaling initial access against a wide range of global targets,” the cybersecurity firm said.

China’s Ministry of Foreign Affairs and its embassy in Washington, DC did not immediately respond to requests for comment.

Beijing has previously denied engaging in cyber-espionage – a practice carried out by governments worldwide – instead casting itself as a regular victim of cyberattacks.

China claims democratically ruled Taiwan as part of its territory, although the Chinese Communist Party has never exerted control over the island.

Relations between Beijing and Taipei have deteriorated as Taiwan’s ruling Democratic Progressive Party has sought to boost the island’s profile on the international stage.

On Monday, Taiwanese President William Lai Ching-te hit out at Beijing after it issued legal guidelines threatening the death penalty for those who advocate Taiwanese independence.

“I want to stress, democracy is not a crime; it’s autocracy that is the real evil,” Lai told reporters.

Lai, whom Beijing has branded a “separatist”, has said there is no need to formally declare independence for Taiwan because it is already an independent sovereign state.

Canada's ambassador to Beijing visited the region of Xinjiang last week and expressed concerns about human rights violations directly to local leaders, the Canadian foreign ministry said in a statement on Sunday.

A 2022 report by the then U.N. human rights chief said China's treatment of Uyghurs, a mainly Muslim ethnic minority in Xinjiang, in the country's far west, could constitute crimes against humanity. Beijing denies the allegations.

Ambassador Jennifer May visited Xinjiang from June 19-22, the first such visit by a Canadian envoy in a decade. "(This) served as an opportunity to communicate Canadian concerns about the human rights situation directly to the leadership of Xinjiang," the ministry statement said.

"Ambassador May raised concerns over credible reports of systematic violations of human rights occurring in Xinjiang affecting Uyghurs and other Muslim ethnic minorities, including those raised by U.N. experts," it continued.

The Chinese embassy in Ottawa was not immediately available for comment. May visited Xinjiang a few weeks after Canada said it had warned China against meddling in its elections. In April, Prime Minister Justin Trudeau said Beijing had tried to interfere in the last two national votes, a charge China dismissed.

Campaign groups on Saturday urged U.N. human rights chief Volker Turk to take more action over what they said were documented abuses against Uyghurs and other Muslims.

May also reiterated Canada's calls for China to allow U.N. independent experts unfettered access to all regions of China, the statement said. Canada, like the United States, has imposed sanctions on individuals and entities over alleged rights abuses in Xinjiang.

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Taiwan's Mainland Affairs Council (MAC) on Friday evening denounced a new guideline issued by the Chinese authorities threatening to punish "diehard" advocates of Taiwan independence with the death penalty, calling the move detrimental to bilateral people-to-people exchanges.

In a press release, the MAC called the guideline laid out by Chinese officials earlier the same day "regrettable" and described it as provocative and detrimental to exchanges between people on both sides of the Taiwan Strait.

"The Beijing authorities have no jurisdiction over Taiwan," said the MAC, the top government agency handling cross-strait affairs, adding that China's "so-called laws and regulations have no binding force on our people."

However, the MAC also urged Taiwanese living in China or considering travel there to exercise caution.

At a press conference in Beijing, Chinese officials unveiled the guidelines on punishing "Taiwan independence diehards" convicted of "inciting secession," under which those involved in serious cases against the country could receive the death penalty.

The guideline, drafted in accordance with existing Chinese laws, such as the 2005 Anti-Secession Law, detail the offences of splitting the country and inciting secession and the penalties those found guilty of such offences can face.

The United Nations High Commissioner for Human Rights, Volker Türk, should provide a public update of measures taken by the Chinese government and by his office to address the human rights situation in Xinjiang, Human Rights Watch, Amnesty International, the International Service for Human Rights, and the World Uyghur Congress said today, releasing a series of translations of the report by his office on Xinjiang published in 2022.

The Office of the High Commissioner’s 2022 report concluded that violations in the region “may constitute international crimes, in particular crimes against humanity.” The ongoing absence of public reporting by the high commissioner to follow-up the atrocity crimes documented by his own office, risks undermining the trust placed in his office by victims and survivors. At the same time, UN member states need to take more determined action to fight against impunity.

“The publication of the UN human rights office’s report was a landmark moment for highlighting the gravity of human rights violations in Xinjiang,” said Elaine Pearson, Asia director at Human Rights Watch. “Now it’s up to the UN high commissioner to make full use of that report to improve the situation for Uyghurs and other Turkic Muslims in Xinjiang.”