‘We don’t do ideological confrontation’

The third Belt and Road Forum (BRF) concluded on Wednesday. It wasn’t nearly as well attended as years past: 2019 saw 36 heads of state and government attend, while 29 attended in 2017. This year, only 22 leaders showed up.

• The Israel-Hamas war probably impacted high-level attendance from the Gulf, and after attending the Asian Games in September, it may have been too soon for some leaders to make a return trip to China.
• Even if the EU hadn’t fallen out of love with the Belt and Road Initiative, it is likely that top-level European representatives would have stayed away from the summit due to the presence of Vladimir Putin. The Russian leader was the guest of honor, seated front and center during Xí Jìnpíng’s 习近平 opening remarks and given more than 10 minutes to speak following Xi.

Xi framed the Belt and Road as part of a greater struggle against colonialism and developmental injustice during the two-day conference.

• “Ideological confrontation, geopolitical rivalry and bloc politics are not a choice for us,” he said during the forum’s opening speech (per the official translation). “What we stand against are unilateral sanctions, economic coercion and decoupling and supply chain disruption.”
• Besides public relations for the Belt and Road, the main value of the BRF was the opportunity it provided Xi to meet world leaders. China signed a free trade agreement with Serbia and elevated ties with Ethiopia to those of an “all-weather strategic partnership.”

There were a lot of notable absences though. Click through for a full list.

Jacob Mardell

China condemned an attack on a hospital in the Gaza Strip which caused “massive casualties,” while reiterating calls for “an immediate ceasefire and cessation of hostilities,” the Chinese Foreign Ministry said in a statement yesterday.

The horrific explosion reportedly killed hundreds at the Al Ahli Arab Hospital, sparking fierce protests across the region. The perpetrators of the attack and the number of fatalities remain unclear, though the U.S. released its own assessment of the attack, stating that “Israel is not responsible for the deadly explosion at a hospital in Gaza City,” National Security Council spokesperson Adrienne Watson said on X on October 16.

China has not condemned the October 7 Hamas attacks on Israel that killed more than 1,400 people.

Afghanistan’s Taliban wants to formally join China’s Belt and Road Initiative (BRI) under the China-Pakistan Economic Corridor (CPEC), and will send a technical team to China for further talks, the regime’s acting commerce minister Haji Nooruddin Azizi said today per Reuters.

The U.S. state of Arkansas has ordered Syngenta, the agritech company owned by Chinese state-owned firm ChemChina, to sell off 160 acres (65 hectares) of land in the state within two years, citing national security threats posed by the Chinese government.

Syngenta spokesperson Saswato Das criticized the decision: “Our people in Arkansas are Americans led by Americans who care deeply about serving Arkansas farmers,” he said. “This action hurts Arkansas farmers more than anyone else.”

China formally arrested a Japanese employee of drugmaker Astellas Pharma who had been detained on suspicion of “engaging in espionage activities and violating anti-espionage law.”

The unidentified man, who worked for Astellas’s office in Beijing, was detained by Chinese authorities in March just before his scheduled return to Japan, a move that stunned the Japanese business community and sparked repeated calls for his release from the Japanese government. He was placed in criminal detention last month, under which Chinese law stipulates that a person can be officially arrested within 37 days.

Taiwan detected 13 Chinese aircraft in its air defense zone this morning, including fighter jets and drones that carried out “joint combat patrols” with Chinese warships, Taiwan’s defense ministry reported today.

Chinese state media: World leaders all want to meet Xí Jìnpíng 习近平: That’s the main message in state media today, as it has been in much of the official reporting and propaganda about the Belt and Road Forum that concluded yesterday.

Xinhua News agency’s top item is: Xi Jinping meets with Prime Minister Maleiane of Mozambique. The People’s Daily’s print front page has these stories:

• Xi Jinping attended the opening ceremony of the third Belt and Road International Cooperation Summit Forum and delivered a keynote speech
• Xi Jinping held talks with Russian President Putin
• Xi Jinping meets with Argentine President Fernandez
• Xi Jinping meets with Kenyan President Ruto
• Xi Jinping meets with Nigerian Vice President Shettima
• Xi Jinping meets with United Nations Secretary-General Guterres

Uyghurs living in Kabul told The China Project that they are worried about an August 2023 agreement between the Taliban and Huawei, China’s giant telecommunications company, which could see the rollout of cameras equipped with facial-recognition capabilities in every province of Afghanistan.

• There are estimated to be more than 3,000 Uyghurs in Afghanistan, including recent arrivals and some who have been there for decades.
• China, which has strengthened ties with the Taliban since the fundamentalist group took over the country after the U.S. exit in 2021, has a history of using Huawei technology to racially profile Uyghurs.

The Taliban hopes to use the cameras to quell violent opposition from groups such as Islamic State Khorasan Province (ISIS-K) and the National Resistance Front.

• The Uyghurs in Afghanistan, who have so far escaped the Taliban’s scrutiny, fear that their anonymity and freedom will soon be lost under the new surveillance regime.

Ruth Ingram spoke to Uyghurs in Afghanistan and around the world for the latest Uyghur Bulletin.

Ruth Ingram

The Chinese government has told its citizens to exit Israel as quickly as possible amid the escalating conflict between Israel and the Palestinian militant group Hamas.

• At a regular press briefing on Monday, Chinese Foreign Ministry spokesperson Máo Níng 毛宁 advised citizens to take the earliest available flight back to China, as commercial flights between the two countries are still in operation.
• Mao revealed that four Chinese nationals have been killed during the conflict. Four other Chinese citizens were injured and two are missing.
• Mao also reiterated Beijing’s stance on the issue, calling for an immediate ceasefire and a “two-state solution” that allows for an independent Palestinian state without mentioning the Hamas attacks that began the war.

The delay in evacuation efforts still sparked a heated debate on the Chinese internet about the central government’s responsibility toward citizens stranded abroad, with some saying they were confused by Beijing’s attitude and others urging the ones in danger to be responsible for their own safety.

• “Turns out that the ‘wolf warrior’ does not exist in real life,” a Weibo user wrote, referring to the blockbuster film Wolf Warrior 2, about a special forces officer being on a mission to rescue Chinese hostages in Africa.

Here are the details.

Zhao Yuanyuan

• In the early 2000s, the Shanghai-born basketball player Yáo Míng 姚明 was the most famous Chinese person on Earth. The 7-foot-6 Houston Rockets center was an NBA All-Star and a symbol of a high point in U.S.-China relations. He is the subject of Brook Larmer’s Operation Yao Ming, which is the latest entry in Paul French’s Ultimate China Bookshelf.

Below are links from our NewsBase to other noteworthy reports published in the last 24 hours from and about China.

BUSINESS AND TECHNOLOGY:

Economic gloom or boom
A financial crisis in China is no longer unthinkable / WSJ (paywall)
“The world’s second-largest economy has a deflating property bubble, local governments struggling to pay their debts and a banking system heavily exposed to both.”
China’s economy faces deepening troubles in years ahead / WSJ (paywall)

Country Garden
China’s Country Garden bondholders seek talks after missed payment -sources / Reuters
“Country Garden bondholders are seeking urgent talks with the troubled property developer after it missed a $15 million coupon repayment, putting it at risk of default, according to three sources with direct knowledge of the matter.”
Country Garden sells down a barely started Australia project / Reuters
“Four years after Chinese property giant Country Garden launched a A$2 billion ($1.27 billion) development of 3,600 homes an hour’s drive southwest of Sydney, the outer suburban site remains a sparse field with fewer than 50 houses under construction.”
Country Garden, facing debt deadline, says executives have not left China / NYT (paywall)
“The company, one of China’s biggest property developers, took the unusual step of stating that the company’s founder and its chairwoman were ‘working normally.’”

State-owned businesses
China state-owned companies buy back shares / Nikkei Asia (paywall)
“About 50 Chinese state-owned companies are trying to bolster investor confidence by rolling out share buybacks or plans by big stockholders to expand their holdings after a series of other measures to prop up the stock market fell short.”

Local government debt and the banks holding it
China’s regional banks facing $300 billion shortfall, local government debt ‘pain could be too much to bear’ / SCMP (paywall)
“China’s regional banks could suffer a capital shortfall of 2.2 trillion yuan ($301 billion) from a deepening local government debt crisis, according to S&P Global Ratings, highlighting the fallout from the turmoil in the property sector on the country’s financial system.”

Automobiles
Italy’s DR Automobiles faces antitrust probe over Chinese origins of its cars / Reuters
“Italian carmaker DR Automobiles is facing an antitrust investigation for allegedly misleading consumers over where its DR and EVO-branded vehicles are made, the Italian competition authority (AGCM) said on Thursday.”

Semiconductors
Beijing weighs delaying approval of $69 billion Broadcom-VMware deal / FT (paywall)
“Beijing is weighing holding up U.S. chipmaker Broadcom’s $69 billion acquisition of cloud software company VMware — a move that would come soon after Washington toughened rules to block Chinese access to high-performance semiconductors.”

Phillips
Philips CEO: China business, supply chain undergoing major changes / Reuters
“Making more products for China locally and buying chips from several suppliers are just two of the supply chain changes Dutch healthcare technology firm Philips is making due to rising trade tensions, its CEO Roy Jakobs told Reuters.”

Tencent
Beijing takes ‘golden share’ in Tencent subsidiary, records show / Nikkei Asia (paywall)
“The Chinese government has taken a ‘golden share’ in a domestic subsidiary of tech giant Tencent Holdings, a company registration database showed, the latest sign of China stepping up its control over its tech sector.”

SCIENCE, HEALTH, AND ENVIRONMENT:

Infectious diseases
Chinese scientists are hunting for the next viral disease threat to humans before it emerges / SCMP (paywall)
“It is just a matter of time before another pathogen capable of jumping from animals to humans poses the next large-scale threat to humanity, according to scientists who study such viruses. The challenge has been identifying what virus is most at risk of making that leap.”

Agriculture
Appetite for soya hinders China’s self-sufficiency drive / FT (paywall)
“China’s drive for self-sufficiency, as trade links fray with the U.S., is not confined to the cutting-edge likes of semiconductors and missile technology. The humble soyabean, too, is weighing on the minds of the nation’s leaders, and has become the unlikely subject of a national campaign to boost output.”

Mental health
How a ‘brain pacemaker’ can help treat depression / Sixth Tone
“After 16 years of battling ‘demons,’ one patient says he has been given a second chance at life by a brain-computer interface developed in Shanghai.”

Renewable energy
Solar leads Belt and Road’s green growth, heavy industries required to report emissions / Caixin (paywall)
“Solar power is leading the growth of renewable energy collaborations between China and its Belt and Road Initiative (BRI) partners, according to a report published on October 15 by the People of Asia for Climate Solutions, a nonprofit based in Manila.”

POLITICS AND FOREIGN AFFAIRS:

Military
Opinion: Xi could strike a real blow to military corruption if he wanted to / Nikkei Asia (paywall)
James Char writes: “The continued absence from public view of Chinese Minister of National Defense Lǐ Shàngfú 李尚福 and other leading generals suggests a major purge of the People’s Liberation Army is underway.”
Pentagon unveils 2023 China military and security report / Mirage
“The Department of Defense today released its annual report on ‘Military and Security Developments Involving the People’s Republic of China.’ The congressionally mandated report serves as an authoritative assessment on military and security developments involving the PRC.”

BRI
Taliban says plans to formally join China’s Belt and Road Initiative / Reuters
“The Taliban administration wants to formally join Chinese President Xí Jìnpíng’s 习近平 huge ‘Belt and Road’ infrastructure initiative and will send a technical team to China for talks, Afghanistan’s acting commerce minister said on Thursday.”
China ramps up yuan internationalization under Belt and Road Initiative / Reuters
“China is using loans agreed through its Belt and Road Initiative (BRI) to promote the yuan internationally, having already boosted the yuan’s share of global payments to record levels.”
Hong Kong, Beijing pledge 15 billion yuan for investment platform focusing on renewable energy, infrastructure projects / SCMP (paywall)
“Hong Kong and Beijing have pledged 15 billion yuan ($2.05 billion) to create an investment platform targeting projects under the belt and road plan, including those focused on developing infrastructure and transitioning to renewable energy sources.”
Belt and Road Forum shows China recalibrating after 10 years / Nikkei Asia (paywall)

U.S.-China competition and tensions
Nebraska governor faces backlash for comments on investigative reporter’s Chinese nationality / AP
“Nebraska Gov. Jim Pillen is facing backlash after comments he made about the Chinese nationality of a reporter whose story cited environmental concerns at farms owned by the governor.”
China expanding ways to target continental U.S., Pentagon report says / Nikkei Asia (paywall)
“China is expanding the ways it can hit the continental U.S., the Pentagon’s annual report to Congress has revealed, including what would be the world’s first conventionally armed intercontinental missile and submarine-launched weapons that can be fired from the safety of its littoral waters.”
Pentagon accuses China of accelerating nuclear build-up / FT (paywall)
China’s military is making risky moves and adding nuclear warheads, U.S. says / NYT (paywall)
Four things to know about tightened U.S. rules over chip exports to China / Caixin (paywall)
“The U.S. on Tuesday announced an updated set of export controls over more cutting-edge artificial intelligence (AI) semiconductor and chip manufacturing equipment, a move aimed at closing loopholes in existing rules and further blocking China’s access to American technology.”

Israel-Hamas conflict
China seeking quick end to Israel-Hamas conflict – Xi / Reuters
“China supports Egypt’s efforts to let in humanitarian aid to Gaza, state media quoted Xi as telling Madbouly. The Chinese president’s remarks are among the first he has made about the conflict which erupted after Hamas launched an assault on Israel on October 7, triggering a major military assault on Gaza.”
China condemns ‘heinous attack’ on hospital and urges ceasefire as priority at UN Security Council / SCMP (paywall)
“Beijing has condemned what it called a ‘heinous attack’ on a Gaza hospital that brought the Palestinian death toll to nearly 3,500, and it warned that the region will be “engulfed” without a complete ceasefire.”

Singapore
Singapore stresses supply chain resilience at Beijing forum / Caixin (paywall)
“Singapore politicians reiterated the Republic’s support for China’s Belt and Road Initiative (BRI) at a high-level forum in Beijing, while also stressing the need to strengthen global supply chains and bolster international cooperation on green financing.”

Japan
China’s foreign minister seeks fair, open cooperation with Japan / Reuters
“Cooperation between China and Japan should be fair and open, and both sides should not ‘artificially’ set restrictions and engage in ‘decoupling,’ Chinese Foreign Minister Wáng Yì 王毅 said on Thursday.”
China formally arrests Astellas employee suspected of spying, Japan urges release / Reuters
“China has formally arrested a Japanese businessman who was detained in March on suspicion of espionage, the Japanese government said on Thursday, calling on Beijing to release its national to avoid the issue becoming another thorn in relations.”
China formally arrests Japanese man for alleged espionage / Nikkei Asia (paywall)

Middle East
Up to 6 Chinese warships present in Middle East over past week / SCMP (paywall)
“The arrival of a replacement escort group in the Gulf region meant two advanced 052D destroyers have been stationed there at a time of heightened tensions.”

Thailand
China’s Xi calls for efforts to fight cross-border crimes with Thailand / Reuters
“China and Thailand should step up efforts to crack down on cross-border crimes such as telecommunications fraud and online gambling, President Xi Jinping told Thai Prime Minister Srettha Thavisin in Beijing on Thursday.”

SOCIETY AND CULTURE:

Pet safety
After dog mauls child, Chinese cities push to tighten pet laws / Sixth Tone
“Earlier this week, footage surfaced online showing a black rottweiler assaulting a young child and her mother.”

Fast-food
The Chinese burger startups vying to take a bite out of KFC / Sixth Tone
“Armed with beefy venture capital investments, Chinese fast-food brands are winning over consumers with a combination of aggressive price cuts and patriotic marketing tactics.”