What to Expect From Jake Sullivan’s China Visit；How the Russian Establishment Really Sees the War Ending；Trump 2.0 Would Face a New World

Welcome to this issue of The China Brief. Today is August 28, 2024. Here at The China Brief, we bring you the latest news on China’s politics, economy, and society from global media sources, along with exclusive expert analysis. If you find our content helpful, please subscribe to our newsletter.

What to Expect From Jake Sullivan’s China Visit

Foreign Policy

This week in Foreign Policy’s China Brief, U.S. National Security Advisor Jake Sullivan commenced a three-day visit to Beijing, aiming to maintain diplomatic momentum between the U.S. and China following a series of high-level visits by U.S. officials since late 2022. The purpose of Sullivan’s trip is to clear up misunderstandings and avoid competition escalating into conflict, as both nations seek to make progress in cooperative areas before the end of President Biden’s term. Despite criticisms from Republicans regarding the effectiveness of these diplomatic efforts, they have yielded some positive outcomes, such as China’s commitment to climate goals and renewed military communication.

In parallel, Canada announced it would impose 100% tariffs on Chinese electric vehicle imports, aligning with U.S. measures to prevent Chinese automakers from exploiting trade loopholes. This trend of imposing tariffs on Chinese goods is expanding globally, driven by China’s overcapacity in manufacturing due to a focus on state-backed industries amidst a property market downturn. As a result, Beijing is contemplating countermeasures to these tariffs, while there is growing pressure on the Chinese government to shift its economic focus from manufacturing to enhancing domestic consumption.

On the environmental front, China’s Ministry of Industry and Information Technology revealed plans to suspend permits for new steel plants, a significant step considering that steel production contributes to a substantial portion of the country’s carbon emissions. This follows a broader trend of reducing reliance on coal power and increasing renewable energy initiatives. Experts suggest that if these trends continue, China’s emissions could peak as early as this year, marking a notable advancement in the country’s climate strategy.

What to Expect From Jake Sullivan’s China Visit

How the Russian Establishment Really Sees the War Ending

Foreign Policy

Discussions regarding the resolution of the war in Ukraine are ongoing not only in the West but also within Russia. Conversations among members of the Russian elite, including diplomats, academics, and business leaders reveal a predominantly cautious outlook towards military endeavors in Ukraine. The prevailing sentiment is that a complete military victory, which includes the annexation of extensive Ukrainian territories, is unrealistic. Instead, a significant majority favors a cease-fire based on the current frontlines, believing that the Ukrainian military cannot reclaim substantial lost territories. This perspective remains largely unchanged even after Ukraine’s recent incursion in the Kursk region, despite the embarrassment it has caused for the Russian government.

The Russian establishment is acutely aware of the high costs associated with attempts to capture major Ukrainian cities, such as Kharkiv, and many argue that such efforts would require a level of mobilization that could provoke domestic resistance. There is a strong consensus against any military action against NATO, as the risks outweigh the potential benefits. Most of the individuals consulted agree that Russia cannot withdraw from the territories it currently claims, but some are open to negotiating a demilitarization of contested areas in exchange for a cease-fire. This negotiation strategy reflects a broader willingness to engage in discussions that could alleviate the ongoing conflict while allowing the Russian government to assert its security interests.

Ultimately, the future of negotiations appears contingent on battlefield developments. While Russian President Vladimir Putin’s decisions remain pivotal, there’s a recognition that he could engage in pragmatic compromises based on the realities of military outcomes. Should Ukrainian forces maintain their frontline positions, this could lead to a cease-fire along those lines. Conversely, a Ukrainian collapse could spur more aggressive territorial ambitions reminiscent of historical Russian expansionism. The complexity of these negotiations is underscored by the necessity of addressing the status of annexed territories without formal recognition and finding ways to defer these contentious issues in a peace settlement.

https://foreignpolicy.com/2024/08/27/russia-establishment-ukraine-war-end-ceasefire/

Trump 2.0 Would Face a New World

Foreign Policy

Should Donald Trump secure a second presidential term, his foreign policy is likely to reflect a significant shift in response to the evolving global landscape. Analysts are divided on whether Trump will abandon Ukraine and NATO, or escalate military support and adopt a more aggressive anti-communist stance, particularly against Russia and China. The recent surge in European defense spending and the ongoing conflict in Ukraine may compel Trump to maintain a stronger commitment to NATO, as European nations are increasingly shouldering their share of defense costs. The geopolitical changes since his first term could prompt Trump to adopt unexpected policies, potentially fostering closer ties with allies and strengthening U.S. military presence abroad.

Trump’s administration would confront a deteriorating situation at the U.S.-Mexico border, leading to a renewed focus on immigration and national security. The Republican platform emphasizes completing the border wall, deploying advanced technology, and reallocating military resources to enforce border security. A second Trump term could see a substantial military buildup as the U.S. Armed Forces face challenges in capacity and readiness. With the ongoing fentanyl crisis and a surge in illegal crossings, Trump would likely prioritize border security over other foreign policy concerns, navigating complex relationships with Mexico and Central American countries.

In Asia, Trump would face a more aggressive China, increasing military tensions with Taiwan, and a strengthened partnership between China and Russia. The evolving dynamics may lead Trump to adopt a tougher stance on China, potentially reigniting trade wars and decoupling from Chinese economic dependencies. However, the changing attitudes of U.S. allies towards China could facilitate a collaborative effort to contain its influence. Trump’s approach to Iran and the Middle East would also be markedly aggressive, shifting from diplomacy to military action against Iranian nuclear capabilities and regional proxies. Ultimately, Trump’s second term may present a blend of continuity and adaptation, reshaping international relations and U.S. strategic priorities.

Trump 2.0 Would Face a New World

Washington and Beijing Don’t Understand Each Other’s Fentanyl Positions

Foreign Policy

The United States is currently facing a severe fentanyl crisis, with over 100,000 drug-related deaths in 2023, approximately 70 percent of which are linked to fentanyl and synthetic opioids. This crisis is significantly more deadly than car accidents and gun-related violence combined. The amount of powdered fentanyl seized by authorities has doubled in the past two years, making it a critical election issue for voters, particularly in swing states, where 80 percent see it as a priority over other pressing topics like abortion and climate change.

The majority of fentanyl and its precursor chemicals are believed to originate in China, leading to long-standing tensions between the two nations regarding drug trafficking control. Cooperation between the U.S. and China saw a recent uptick following high-level meetings, but skepticism remains about the solidity of commitments to disrupt the supply chains feeding Mexican cartels, who manufacture most of the illicit fentanyl. The two countries experience a significant perception gap; while the U.S. blames China for exacerbating the crisis, China contends that the U.S. must address its internal drug demand issues as well.

To effectively combat the fentanyl epidemic, both countries must move beyond accusations and develop a collaborative approach based on shared understanding and evidence. This includes enhancing communication and data-sharing mechanisms while learning from each other’s best practices in drug policy. A more profound partnership is essential not only for addressing the current crisis but also for preparing for future synthetic opioid threats. Without effective cooperation, the ongoing fentanyl crisis and the potential rise of new designer drugs will continue to devastate communities across the globe.

https://foreignpolicy.com/2024/08/27/washington-and-beijing-dont-understand-each-others-fentanyl-positions/

China Will Generate More Nuclear Power Than Both France and the United States by 2030

Diplomat

Chinese Premier Li Qiang approved 11 nuclear reactors in coastal provinces with a $33.3 billion investment to support the country’s green transition goals. China currently ranks just behind France in nuclear energy capacity but aims to surpass both France and the U.S. by 2030. The expansion, driven by increasing energy demand and carbon neutrality goals, includes advanced Generation III and IV reactor technologies. Despite setbacks in inland nuclear development post-Fukushima, China is poised to lead in the global nuclear market with ongoing projects and innovations in reactor design.

https://thediplomat.com/2024/08/china-will-generate-more-nuclear-power-than-both-france-and-the-united-states-by-2030/

Harris and Trump Embrace Tariffs, Though Their Approaches Differ

NY Times

The article discusses the shifting attitudes towards tariffs in the U.S. political landscape, particularly in the context of the 2024 presidential election. Unlike the skepticism towards tariffs that characterized the 2016 election, both Donald Trump and Democratic nominee Kamala Harris are now endorsing tariffs as a means to protect American manufacturing from international competition, especially from China. This marks a significant change from previous decades when lowering tariffs was the norm. The backlash against globalization and its impact on American jobs has led to bipartisan support for tariffs. Although Trump’s proposals include significantly high tariffs, Harris aims to differentiate her approach, though both are expected to maintain a focus on tariffs if elected. Economists warn that high tariffs could lead to increased consumer prices.

https://www.nytimes.com/2024/08/27/us/politics/trump-harris-tariffs.html

Banning TikTok Won’t Keep Your Data Safe

Foreign Policy

In April, President Joe Biden signed a law requiring Beijing-based ByteDance to divest its U.S. subsidiary TikTok by January 2025, threatening severe penalties for noncompliance. This ultimatum presents a dilemma for TikTok’s 170 million U.S. users, forcing them to choose between loyalty to the app and compliance with government and Silicon Valley demands. TikTok and ByteDance have contested the law, labeling it “unconstitutional” and emphasizing their First Amendment rights, while also initiating a lawsuit likely to escalate to the Supreme Court.

The broader implications of the TikTok ban reveal a concerning trend in the digital landscape, where data ownership and control are increasingly concentrated among a few powerful entities, including authoritarian states. The article argues that the current internet model, which tightly couples applications with proprietary databases, stifles true collaboration and knowledge sharing. This transactional nature of the web leads to user data exploitation, resulting in biased information ecosystems that exacerbate social divisions and mental health issues.

Canadian programmer Heather Marsh proposes an alternative framework called G, aimed at creating a universal database that democratizes access to public data while decoupling apps from databases. This system would allow users to maintain ownership of their personal data and collaborate across various applications without falling prey to corporate censorship or authoritarian control. By fostering a global knowledge commons, G seeks to empower individuals and communities, offering a path toward a more equitable and open digital future that transcends the limitations of the current internet paradigm.

Banning TikTok Won’t Keep Your Data Safe

Tariffs on Chinese EVs here. Here’s how Canada can square this with the WTO

The Globe and Mail

The Trudeau government plans to implement 100% tariffs on Chinese electric vehicles and 25% surcharges on Chinese aluminum and steel starting October 1, aligning with similar actions by the U.S., Mexico, and the EU. Utilizing a rarely invoked provision of the Customs Tariff Act, these measures aim to address economic threats posed by subsidized Chinese exports. While Canada anticipates retaliation from China and potential WTO challenges, it argues that exceptional tariffs are justified under international law due to security concerns. This shift reflects a broader trend of countries prioritizing national interests over multilateral trade agreements amidst changing global dynamics.

https://www.theglobeandmail.com/business/commentary/article-tariffs-on-chinese-evs-here-heres-how-canada-can-square-this-with-the/

China’s ‘problematic laws’ remain in Xinjiang two years after damning report: UN

South China Morning Post

Two years after a UN report highlighted potential crimes against humanity in Xinjiang, the UN’s human rights office reports that many problematic laws and policies persist in the region. Despite engaging with Beijing, the OHCHR faces challenges in accessing information and concerns over reprisals. The UN urges China to review its national security and counterterrorism laws to protect minorities. The US and EU have enacted measures against forced labor linked to Xinjiang, while sanctions target Chinese officials. Uygur activists express disappointment over China’s lack of compliance with UN recommendations, emphasizing continued human rights violations.

https://www.scmp.com/news/china/article/3276158/chinas-problematic-laws-remain-xinjiang-two-years-after-damning-report-un?utm_source=rss_feed

Chinese EV maker Xpeng unveils budget car models priced under US$17,000

South China Morning Post

On August 27, 2024, Chinese electric vehicle manufacturer Xpeng launched the Mona M03, a series of budget models featuring preliminary autonomous driving systems. Priced from 119,800 yuan (approximately US$16,800), these cars offer a range of at least 515km (320 miles) on a full charge. The vehicles have been well-received for their performance comparable to more expensive models, and sales staff anticipate they will attract younger buyers. The Mona M03 is expected to compete with BYD, another Chinese EV manufacturer that is currently the world’s largest in the sector.

https://www.scmp.com/business/china-evs/article/3276248/chinese-ev-maker-xpeng-unveils-budget-car-models-priced-under-us17000?utm_source=rss_feed

China’s Nvidia wannabe, Tencent-backed AI chip start-up EnFlame, flags IPO intention

South China Morning Post

Enflame, a Chinese AI chip start-up backed by Tencent Holdings, has begun the IPO tutoring process with China International Capital Corporation as part of its preparation for a public offering. Valued at $1.65 billion in September, Enflame aims to capitalize on the absence of Nvidia in China due to US export controls. Founded in 2018 by former AMD employees, the company has raised over $742 million and is backed by significant investors, including Tencent and the China Integrated Circuit Industry Investment Fund. With increasing pressure from investors for exit strategies, Enflame and its competitors are focusing on providing domestic alternatives to foreign chips in China. Despite having access to global foundries, Enflame has had to adjust its chip designs to meet production requirements.

https://www.scmp.com/tech/tech-war/article/3276213/chinas-nvidia-wannabe-tencent-backed-ai-chip-start-enflame-flags-ipo-intention?utm_source=rss_feed

How a Harris-Walz administration might handle Asia policy

Japan Times

The upcoming U.S. presidential election features a tight race between former President Donald Trump and current Vice President Kamala Harris, accompanied by their respective running mates, Sen. J.D. Vance and Gov. Tim Walz. Despite the close standings in key swing states, their approaches to Asia policy diverge significantly. The Trump-Vance ticket is characterized by a hawkish stance toward China and a tendency to dismiss traditional European allies, with a focus on urging Asian countries to choose sides between Washington and Beijing. However, they have not articulated how human rights issues in Asia will influence U.S. decisions. Trump has also suggested imposing high tariffs on Chinese goods, which could negatively impact economies in Asia and globally.

https://www.japantimes.co.jp/commentary/2024/08/28/world/harris-walz-asia-policy/

Chinese banks buoyant amid market tumult as stock investors hunt for dividend yields

South China Morning Post

Chinese banks are outperforming the broader market in 2024, with shares in major state-owned lenders rising to multi-year highs. The 42 mainland-listed banks have gained an average of 19% this year, contrasting with a 4.2% decline in the CSI 300 Index. Attractive dividend yields, averaging around 5%, are driving this performance, especially as government bond yields hit record lows. The big four banks—ICBC, CCB, ABC, and Bank of China—have seen significant stock price increases. Despite a sluggish economic recovery, expectations of stabilizing net-interest margins are boosting investor confidence in the banking sector.

https://www.scmp.com/business/china-business/article/3276230/chinese-banks-buoyant-amid-market-tumult-stock-investors-hunt-dividend-yields?utm_source=rss_feed

Beijing diplomat urges China and Japan to take long view on tense ties to manage friction

South China Morning Post

Veteran Chinese diplomat Liu Jianchao emphasized the need for a long-term perspective in Sino-Japanese relations during talks with a Japanese delegation led by Toshihiro Nikai. The meeting aimed to improve communication amid strained ties over issues like military airspace intrusions and the Fukushima water release. Liu urged strategic cooperation and constructive management of differences, while Nikai expressed a desire for deeper dialogue. The visit, the first in five years, reflects a recent resurgence in diplomatic exchanges, with both sides looking to enhance cooperation in various sectors ahead of Japan’s upcoming leadership election.

https://www.scmp.com/news/china/diplomacy/article/3276228/beijing-diplomat-urges-china-and-japan-take-long-view-tense-ties-manage-friction?utm_source=rss_feed

Sensetime’s generative AI growth pushes revenue up 21% in first half

South China Morning Post

Chinese AI company SenseTime has reported a 21.4% increase in revenue for the first half of the year, reaching 1.74 billion yuan (US$244.3 million), driven largely by its generative AI (GenAI) business, which saw a 256% surge to 1.05 billion yuan, making up 60% of total revenue. Despite this growth, the company’s traditional AI segment, primarily its Smart City services, experienced a 50.6% decline in revenue. SenseTime aims to achieve profitability within two years, with GenAI as its key growth driver, although it reported losses of 2.4 billion yuan in the first half of the year, down from the previous year. Shares of SenseTime have fallen to HK$1.11, significantly below its IPO price of HK$5.50. The company is now the second-largest provider of large language models (LLMs) in mainland China, holding 16% of the market.

https://www.scmp.com/tech/big-tech/article/3276215/sensetimes-generative-ai-growth-pushes-revenue-21-first-half?utm_source=rss_feed

China’s embattled restaurants, embroiled in price war, struggle to stay afloat

South China Morning Post

Liao, a 32-year-old restaurateur in Shenzhen, has closed four of her five Sichuan-style restaurants due to declining profits and a competitive price war in China’s catering industry. Many operators across major cities face similar struggles, with significant profit drops reported in Beijing and Shanghai. Analysts warn that ongoing price cuts, driven by low consumer spending and economic uncertainty, threaten small businesses. Some larger chains can absorb losses, but many self-employed restaurateurs resist lowering prices to avoid further losses. Calls for government intervention to stabilize the market have increased as closures of food establishments rise.

https://www.scmp.com/economy/economic-indicators/article/3276206/chinas-embattled-restaurants-embroiled-price-war-struggle-stay-afloat?utm_source=rss_feed

Textbooks to teach young Chinese more about national security, Xi Jinping Thought

South China Morning Post

Chinese students will receive new textbooks emphasizing national security and traditional culture as part of Beijing’s ideological control efforts. Starting this autumn, primary and junior high students will study subjects including Chinese language and history, with a focus on President Xi Jinping’s political thoughts. The curriculum will cover historical conflicts like the China-India war and the 1979 China-Vietnam conflict, while also promoting the Communist Party’s ideology. The new materials, which highlight China’s technological achievements, will initially be introduced in first and seventh grades and expanded to all grades within three years.

https://www.scmp.com/news/china/politics/article/3276139/textbooks-teach-young-chinese-more-about-national-security-xi-jinping-thought?utm_source=rss_feed

China’s Xpeng aims to expand with mass-market cars, Europe production

Japan Times

Xpeng is planning to expand its sales by launching a mass-market brand and is looking to establish a manufacturing site in the European Union to avoid higher tariffs. CEO He Xiaopeng announced that the company is in the early stages of site selection for localizing production in Europe. Xpeng, which partners with Volkswagen in China, aims to target areas with low labor risks and is also planning to set up a large-scale data center in Europe to enhance data collection for intelligent driving features.

https://www.japantimes.co.jp/business/2024/08/28/companies/china-xpeng-cars-europe/

Chinese hackers breach U.S. internet firms via startup

Japan Times

The Chinese hacking campaign known as Volt Typhoon is using a vulnerability in a product from California-based startup Versa Networks to infiltrate American and Indian internet companies. Security researchers from Lumen Technologies’ Black Lotus Labs reported that Volt Typhoon has successfully breached four U.S. firms, including internet service providers, and one firm in India. They noted with “moderate confidence” that Volt Typhoon is exploiting unpatched Versa systems and that the exploitation is likely ongoing. Versa Networks, which specializes in network configuration software and has received funding from Blackrock and Sequoia Capital, recently announced the bug and provided a patch and mitigation strategies.

https://www.japantimes.co.jp/business/2024/08/28/tech/chinese-hackers-us-startup/

Obesity-related cancers rocketing among young people in China

South China Morning Post

A study reveals a significant rise in obesity-related cancers in China, particularly among young adults, with diagnoses increasing 25 times for those born between 1997-2001 compared to earlier generations. Between 2007 and 2021, these cancer rates grew at 3.6% annually, and 15.3% among those aged 25-29. Key factors include lifestyle changes, dietary habits, and reduced physical activity. Researchers warn that without effective public health measures, obesity-related cancer cases could double in the next decade. The study highlights the urgent need for healthier diets and increased physical activity to combat this alarming trend.

https://www.scmp.com/news/china/science/article/3276140/obesity-related-cancers-rocketing-among-young-people-china?utm_source=rss_feed

‘International students have been scapegoats’: three perspectives on Australia’s proposed overseas student caps

Guardian

The Albanese government plans to cap international student enrollments at 270,000 by 2025, reverting to 2023 levels. The proposal affects higher education and vocational sectors and is pending parliamentary approval. Education Minister Jason Clare states that this will result in a 15% increase in international students compared to pre-pandemic numbers, while private vocational providers will see a 20% decrease. Critics argue that this policy may exacerbate racism and stigmatization towards international students, who contribute significantly to Australia’s economy and society. Concerns also arise about the cap’s impact on local communities and universities.

https://www.theguardian.com/education/commentisfree/article/2024/aug/28/australias-proposed-overseas-student-cap-isnt-just-about-dollars-its-about-people

Asia ‘rapidly sliding towards war’ and US is to blame, Chinese professor says

South China Morning Post

Chinese academic Zheng Yongnian warns that Asia could become a “powder keg” for World War III, attributing this to U.S. actions and alliances. He argues that U.S. dominance is escalating tensions, particularly around Taiwan and the Korean peninsula, while NATO shifts focus towards China. Zheng believes the Asia-Pacific region is crucial for future conflicts due to economic interests, military modernization, and nationalism. He contends that rising nationalism and deep divisions between the U.S. and China heighten the risk of irrational decisions, suggesting that the current geopolitical climate poses significant challenges for global peace.

https://www.scmp.com/news/china/diplomacy/article/3276129/asia-rapidly-sliding-towards-war-and-us-blame-says-chinese-professor?utm_source=rss_feed

Chinese gang jailed for operating £55m money-laundering ring

Guardian

Seven individuals were sentenced for running a £55m money-laundering scheme targeting Chinese university students seeking to bypass China’s cash withdrawal limits. Sentences ranged from 11 months to 12 years. The operation involved using a Chinese messaging app to facilitate transactions while concealing identities to evade detection. Authorities discovered large amounts of cash and money-counting equipment during searches in London and Manchester. The investigation highlighted the extensive use of underground banking within the Chinese diaspora in the UK, with police stating this operation could lead to further criminal activities.

https://www.theguardian.com/uk-news/article/2024/aug/27/chinese-gang-jailed-for-operating-55m-money-laundering-ring

What Across-the-Board Tariffs Could Mean for the Global Economy

NY Times

Former President Donald Trump attributes various economic issues in the U.S. to the global trading system, including job losses and an overvalued dollar. He proposes raising tariffs, particularly a 50-60% tariff on Chinese exports and a 10% surcharge on imports from the rest of the world. Economists caution that such a broad tariff could severely impact global trade, as it would not differentiate between different types of imports or trade relationships. Trump’s approach has drawn parallels to the Smoot-Hawley tariffs of the 1930s, which are considered a major contributor to the Great Depression.

https://www.nytimes.com/2024/08/27/business/trump-tariffs-us-trade.html

The U.S. and China Should Consider Partnering in Space

Foreign Policy

As the U.S. presidential campaign intensifies, both candidates highlight the importance of the U.S.-China rivalry for the nation’s future. Vice President Kamala Harris pledged to ensure America prevails in the 21st-century competition against China, while Donald Trump has frequently addressed the issue, advocating for tax increases on Chinese imports. The article emphasizes that the current geopolitical landscape differs significantly from the Cold War, with China emerging as a true peer competitor to the U.S. due to its economic growth and military investments.

To mitigate tensions, the article suggests exploring cooperative ventures in space, particularly in managing space debris and lunar exploration, which could foster trust and collaboration between the two nations. It urges the reconsideration of U.S. laws prohibiting space cooperation with China, proposing joint efforts could address challenges such as potential manned mission crises and the complexities of Mars exploration. By working together, the U.S. and China could reduce costs, enhance mutual understanding, and tackle critical scientific inquiries, ultimately promoting a more stable relationship amid their competitive dynamics.

The U.S. and China Should Consider Partnering in Space

What’s Next for U.S. Policy in Venezuela?

Foreign Policy

Venezuela’s recent election on July 28, which saw President Nicolás Maduro declared the victor, has been widely criticized as fraudulent. Despite opposition candidate Edmundo González leading in pre-election polls, the authorities announced Maduro’s win without providing the legally required precinct-level results for verification. In response, the opposition mobilized and collected over 23,000 vote tally sheets from nearly 80% of the country, demonstrating that González received significantly more votes than Maduro’s reported margin. The overwhelming evidence prompted support for González from the United States and several allies, yet Venezuela’s Supreme Court, loyal to Maduro, upheld his victory.

In the aftermath of the election, Maduro’s grip on power appears increasingly tenuous. His regime has resorted to heightened repression, resulting in thousands of arrests and multiple deaths, alongside restrictions on communication platforms. This behavior suggests insecurity rather than strength, as Maduro attempts to consolidate power through intimidation. The Biden administration now faces a critical opportunity to advocate for a democratic transition in Venezuela by engaging with potential reformists within Maduro’s government and facilitating negotiations between the opposition and ruling coalition.

The U.S. strategy must balance pressure on Maduro’s regime while preventing a deeper alignment with adversaries like Russia and China. Targeted sanctions on key officials may be more effective than broad economic sanctions, which could reinforce regime solidarity. The Biden administration should also draw on lessons from past U.S. approaches, leveraging regional partnerships with countries like Brazil and Colombia to foster a cooperative response. The coming months are crucial for advancing a democratic solution, and U.S. actions should focus on supporting the Venezuelan people’s aspirations for democracy and stability while addressing the complex realities of the country’s political landscape.

https://foreignpolicy.com/2024/08/27/venezuela-election-maduro-gonzalez-machado-us-sanctions-diplomacy/

Temu owner PDD’s stock rout reflects ‘shaken investor confidence’, analysts say

South China Morning Post

PDD Holdings, owner of Temu and Pinduoduo, experienced a 28.5% stock price drop, losing $55 billion in valuation, due to management’s caution about future profits and weak guidance. This marked the largest intraday fall since its 2015 listing. Executives stated they would prioritize long-term growth over short-term profits, alarming investors amid fierce competition from rivals like Alibaba and JD.com. Despite a significant year-on-year revenue increase, Pinduoduo faces challenges in a tightening e-commerce market, with analysts expressing concerns over its strategy to shift towards high-quality merchants while maintaining its low-cost advantage.

https://www.scmp.com/tech/big-tech/article/3276122/temu-owner-pdds-stock-rout-reflects-shaken-investor-confidence-analysts-say?utm_source=rss_feed

China’s central bank, ministries pledge green finance support for dense economic zone

South China Morning Post

The Chinese government has introduced guidelines to support the Yangtze River Economic Belt in its green transition and pursuit of higher-quality growth. This area, which accounts for 21% of China’s land but 44% of its GDP, will encourage companies to raise capital through green bonds and equity to fund waste treatment, green technology, and pollution control initiatives. This initiative aligns with commitments made during a recent Communist Party economic conference to promote green finance.

The guidelines highlight the Yangtze River Economic Belt as a key area for green development and economic improvement. Eligible companies will receive support from central authorities for various financial activities, including mergers and acquisitions and listings on specific markets. Financial institutions are encouraged to issue green bonds and improve carbon emissions data quality, while also supporting important environmental projects such as waste treatment and climate change mitigation.

This initiative follows a broader plan by the State Council to enhance China’s economy’s environmental sustainability across major sectors, aiming to cultivate an environmental protection industry worth 15 trillion yuan (US$2.1 trillion) by 2030.

https://www.scmp.com/economy/china-economy/article/3276125/chinas-central-bank-ministries-pledge-green-finance-support-dense-economic-zone?utm_source=rss_feed

Did Biden’s White House pressure Mark Zuckerberg to censor COVID content?

Al Jazeera

Meta CEO Mark Zuckerberg accused the Biden administration of pressuring social media platforms to censor COVID-19 content, which he deemed “wrong.” In a letter to the House Judiciary Committee, he acknowledged that his team capitulated to this pressure, expressing regret for not being more vocal against it. Republicans seized on his comments as evidence of government overreach on free speech. Zuckerberg also noted that the FBI influenced Facebook’s handling of the Hunter Biden laptop story during the 2020 election. He stated he has since revised policies to prevent similar occurrences.

https://www.aljazeera.com/news/2024/8/27/did-bidens-white-house-pressure-mark-zuckerberg-to-censor-covid-content

IBM is the latest Western firm to retreat from China

CNN

IBM is cutting over 1,000 jobs in China and closing its research operations, including the China Development Lab, amidst escalating geopolitical tensions between the U.S. and China. Relations have soured over issues like AI and green technology, prompting U.S. companies to reconsider their presence in China, where market access is increasingly restricted. IBM reported a 19.6% revenue decline in China last year and is shifting research to other labs, possibly in India. This trend reflects a broader challenge for American firms operating in China due to national security concerns and changing market dynamics.

https://edition.cnn.com/2024/08/27/business/china-ibm-layoffs-us-tensions-intl-hnk/index.html

Taiwan building five anti-ship missile bases along coast as mainland China tensions grow

South China Morning Post

Taiwan is constructing five bases for US-made Harpoon missiles to enhance coastal defense amid rising tensions with China. Four bases in southern Taiwan and one in Taitung are being established as the navy prepares to acquire these advanced missiles by 2026. The government has awarded contracts worth NT$4.75 billion for the southern facilities, which are expected to be completed within three years. The bases aim to counter potential threats from the People’s Liberation Army and bolster Taiwan’s military capabilities. Relations with China have worsened under Taiwan’s current leadership, prompting increased military intimidation from Beijing.

https://www.scmp.com/news/china/politics/article/3276132/taiwan-building-five-anti-ship-missile-bases-along-coast-mainland-china-tensions-grow?utm_source=rss_feed

China’s new radio frequency rules will block the sale of some wireless chargers from Apple

South China Morning Post

Chinese regulators are set to ban the sale of certain wireless chargers, including some from Apple, due to new radio frequency management regulations effective September 1. These regulations, issued by the Ministry of Industry and Information Technology, specify that only three frequency bands will be allowed for wireless charging devices, and the maximum transmission power must not exceed 80W. Apple’s wireless charging products, such as those using MagSafe and Qi2 standards, operate outside the permitted frequency range, potentially impacting their availability in China. The rules aim to prevent interference with radio communications, particularly in aviation. However, products sold before the regulation takes effect will not be affected. Apple’s iPhones currently support wireless charging at lower power levels, resulting in longer charging times. As Apple prepares for its major product launch on September 9, including the iPhone 16, the company is also navigating challenges related to AI regulations in China.

https://www.scmp.com/tech/policy/article/3276115/chinas-new-radio-frequency-rules-will-block-sale-some-wireless-chargers-apple?utm_source=rss_feed

Hong Kong political climate and high costs hitting overseas business confidence: survey

South China Morning Post

A survey of Hong Kong’s German business community indicates growing unease about the city’s political climate and high rental costs, despite business confidence nearing pre-pandemic levels. Concerns include declining English skills and staffing challenges, with 44% predicting worsening competitiveness in the political landscape. The perception of Hong Kong as “just another Chinese city” is increasing, impacting its appeal to potential employees. While taxation remains competitive, low scores in political stability and housing costs raise concerns about the city’s future as a global financial center. Many businesses are adopting a wait-and-see approach regarding recent national security legislation.

https://www.scmp.com/news/hong-kong/hong-kong-economy/article/3276134/hong-kong-political-climate-and-high-costs-hitting-overseas-business-confidence-survey?utm_source=rss_feed

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