News that caught our eye / The week ending May 17, 2024
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NOTE: The news reports below are not in chronological order. There is often a time lag in their reaching the US and in gaining our attention. These reports reflect the opinions of a variety of news sources.
In China, poker is out, while 'throwing eggs' is in / May 12, 2024
As foreign investors recede from China’s economic environment, Chinese investment financiers are wooing domestic investors instead, and they are using a Chinese card game called Guandan, also known as “throwing eggs,” as a way to socialize and establish business relationships. The game has been gaining in popularity over the last year or so (NBC News).
China’s Dead-End Economy Is Bad News for Everyone / May 11, 2024
China’s struggling economy is running out of options for recovery, and the country’s latest attempt to revive its economy by flooding the global market with its excess goods is meeting opposition from the EU and the US. Large foreign investors in China will see losses if the economy fails; China’s citizens may meet more repression if social unrest sweeps the country (The New York Times).
China's consumer prices rise for third month, signaling demand recovery / May 12, 2024
Consumer prices rose by 0.3% in April over a year ago and core inflation also rose by 0.7%, signaling a slight improvement in China’s economy. However, analysts still express concern about China’s economy and the continuing faults in the housing sector, consumer demand, and high unemployment that underly it (Reuters).
Commentary: China’s housing mess finally comes for Xi’s own / May 14, 2024
China’s Politburo met in April and announced a plan for the government to buy up existing, excess housing stock in an attempt to shore up the bloated property sector. The change may be due to the housing blight’s arrival at the door of “state-owned enterprises,” or SOEs, in housing development (CNA).
China to kick off 1 trillion yuan stimulus bond issues this week / May 13, 2024
In an effort to revive its struggling economy, China announced that it will start issuing 1 trillion yuan in treasury bonds starting this week. The bonds will carry 20, 30 and 50-year terms. The revenue will be used to support “key sectors” in China’s flagging economy (Reuters).
Biden set to hit China EVs, strategic sectors with tariffs / May 10, 2024
The Biden Administration plans to increase tariffs on selected goods made in China, increasing tariffs on EVs from 25% to 100%. Batteries and solar cells will also see an increase. Last month, the administration also placed tariffs on Chinese steel and aluminum, although the US does not import much of either metal from China (Yahoo Finance).
China military says it 'drove away' US destroyer in South China Sea / May 10, 2024
China stated that its navy “drove away” a US destroyer near the Paracel Islands in the South China Sea on May 10th. The US, however, said that the vessel completed its exercise in the area and then left on its own accord. Tensions are rising in the region as China claims most of the South China Sea as its own territory (Reuters).
Malaysia’s appetite for oil and gas puts it on a collision course with China / May 11, 2024
Malaysia’s shallow, offshore oil and gas reserves are running dry, so the country must look for these commodities further out into the South China Sea. But Chinese vessels are almost constantly monitoring the waters, making any construction of oil rigs a risky venture of provoking China. China claims waters that are only 25 km from Malaysia’s shores (The Washington Post).
NATO ally, seen as “model of diplomacy,” endorses China's Ukraine peace plan / May 11, 2024
Hungary’s Viktor Orban met with President Xi last week and established Hungary’s place in China’s Belt and Road Initiative. President Xi lauded Hungary’s partnership with China as a “model” for other EU nations to follow. Orban accused the rest of Europe of being on the side of war regarding Ukraine; he also endorsed China’s peace plan for Ukraine (Fox News).
Russia’s Putin to visit China in first foreign trip since re-election / May 14, 2024
Newly re-elected Russian President Vladimir Putin is visiting China this week for the second time in six months, and marking the 75th anniversary of the People’s Republic of China’s communist rule. China and Russia’s trade increased by 26.3% in 2023 compared to 2022 in spite of sanctions placed by the US and the West (Al Jazeera).
‘Genuine desire’: Putin backs China peace plan to end Ukraine war / May 15, 2024
Russian President Vladimir Putin praised China’s “peace plan” for the war in Ukraine as he traveled to China for a visit with President Xi. Ukrainian officials, however, called Putin’s remarks “hypocritical” as Russia continues to pummel areas of Ukraine. President Zelensky wants China to attend a peace summit in June in Switzerland (Al Jazeera).
Former spy for China's secret police reveals operations targeting dissidents / May 12, 2024
A Chinese spy who “defected” to Australia in 2023 revealed that Chinese operatives are working in Australia and other countries to intimidate, harass, and possibly return suspected Chinese dissidents to China for prosecution if they are found to have spoken against the CCP or President Xi (ABC News).
China Builds World’s First Dedicated Drone Carrier / May 15, 2024
China has built a fourth aircraft carrier, but this one appears to be a drone carrier based on its size and dimensions. It was built in 2022, but it is not certain if the ship is intended for training (posing as an enemy ship) or for direct combat (Naval News).