The Global South arrives in Beijing

• Xi, who Chinese state media today called the “chief architect” behind the Belt and Road Initiative (BRI), is expected to attend the opening ceremony and deliver a keynote speech tomorrow. He will also host a welcome banquet and other events for the guests attending the forum.
• It is “the most important diplomatic event hosted by China this year,” as described yesterday by Chinese state media, with more than 140 countries and over 30 international organizations confirmed to attend.
• China’s championing of the BRI comes at a time when the initiative has been under greater scrutiny, amid criticisms over China’s lending practices to indebted nations like Sri Lanka and recent reports that Italy, the only Group of Seven (G7) country to have signed up to the project, intends to exit the BRI.

Some of the men Xi met with today:

• Ethiopian Prime Minister Abiy Ahmed. The two elevated their nations’ ties to an “all-weather strategic partnership,” a label reserved for a select few of its diplomatic partners such as Venezuela and Pakistan, the latter of which China has invested $25.4 billion over the past decade.
• Serbian President Aleksandar Vucic. Their meeting came on the same day that China’s CRRC Changchun Railway Vehicles signed a high-speed train procurement deal with the Serbian transportation authorities for the Hungary-Serbia railway project, which is expected to cut travel time from eight hours to three between Belgrade and Budapest in a key link between China and Central and Eastern European countries.
• Chilean President Gabriel Boric. Xi called Chile “a pioneer in the Belt and Road cooperation between China and Latin America,” a day after Boric announced that Chinese stainless steel and nickel giant Tsingshan agreed to invest $233.2 million to set up a plant in Chile to produce lithium iron phosphate (LFP), which are used in the batteries that power most of China’s electric vehicles.
• Kazakh President Kassym-Jomart Tokaye, who Xi referred to as an “old friend.” Xi pledged to strengthen cooperation and reiterated China’s commitment to “continuously facilitate trade and investment” including agricultural products from Kazakhstan, as well as digital technology such as cross-border ecommerce, artificial intelligence, big data, and blockchain.

The big kahunas, however, arrive today: Russian President Vladimir Putin landed in Beijing this morning, and the Taliban’s acting minister for commerce and industry Haji Nooruddin Azizi is expected to attend. Click here for all the details.

Nadya Yeh

Chinese foreign minister Wáng Yì 王毅 held a phone call with his Egyptian counterpart Sameh Shoukry today. They discussed continuous efforts to “help deescalate” the conflict between Israel and Hamas, as well as Egypt’s “active participation” in Belt and Road cooperation, Chinese state broadcaster CGTN reported.

“Basically all our drones come from the People’s Republic of China,” Russian Finance Minister Anton Siluanov said in a video clip to Russian lawmakers yesterday. “We are also very grateful to our partners for that,” he said, adding that the Kremlin plans to increase the country’s civilian drone production to at least 41% by 2025. Last month, the U.S. sanctioned 28 entities, 11 of which were Chinese, for allegedly supplying a Russian firm with parts to make drones for Moscow’s war effort in Ukraine.

Russia joined China in banning seafood imports from Japan as a “precautionary measure,” two months after Tokyo began releasing treated radioactive wastewater from the wrecked Fukushima nuclear power plant.

Foreign travel is coming under greater scrutiny from the Chinese government, which is placing tighter restrictions on private travel abroad for civil servants and employees of state-linked enterprises, as well as scrutinizing their foreign connections, Reuters reported.

Reuters cites 10 current or former employees who have stated that curbs have been expanded in the last two years to include bans on foreign travel, increased limits on the frequency and duration of trips, drawn-out approval processes, and pre-departure confidentiality training. They said the measures were not related to the COVID pandemic, under which the Chinese government imposed strict travel restrictions.

The report also cites efforts by central and local authorities to tighten the rules around state or government workers’ personal trips outside China, as well as to track their personal and family ties to foreign countries.

A Hong Kong court handed a victory to the LGBTQ community by rejecting two government appeals that would have denied same-sex married couples the right to rent and own public housing. The ruling by Hong Kong’s Court of Appeal called the bids “discriminatory in nature” and marks the latest in a series of legal breakthroughs for queer rights in the city.

China’s Coast Guard (CCG) drove away several Japanese vessels from disputed waters in the East China Sea, a CCG spokesperson said in a statement today. The contest area was around a group of uninhabited islands which are claimed and known as the Senkaku Islands by Japan, but which China calls the Diaoyu Islands (钓鱼岛 Diàoyú dǎo).

“We urge the Japanese side to immediately stop all illegal activities in these waters and ensure that similar incidents will not happen again,” the spokesperson said.

Chinese stainless steel and nickel giant Tsingshan will invest in a $233.2 million plant in Chile to produce lithium iron phosphate (LFP), which is used in the batteries that power the majority of electric vehicles in the Chinese market, Chilean President Gabriel Boric said yesterday. The plant in northern Chile, home to the world’s biggest lithium reserves, is expected to begin operations in May 2025.

Notable video: Australian journalist Chéng Lěi 成蕾 was released last week after more than three years of imprisonment in China on vague national security charges. Today, she gave her first TV interview since her return to Australia. She said she was jailed because she shared an official document a few minutes before its release by the government.

Chinese state media: Xinhua News Agency’s home page is all about the energetic meeting schedule of Xí Jìnpíng 习近平 who today met with various leaders in town for the Belt and Road Forum:

• President Kassym-Jomart Tokayev of Kazakhstan
• Prime Minister James Marape of Papua New Guinea
• Prime Minister Abiy Ahmed of Ethiopia
• Prime Minister Viktor Orbán of Hungary
• President Shavkat Mirziyoyev of Uzbekistan
• President Gabriel Boric of Chile
• President Joko Widodo Indonesia

The People’s Daily’s top story is about the launch ceremony of the multilingual book Xi Jinping Talks about the Belt and Road. Also covered are meetings of other senior leaders with some of the above-mentioned visitors, as well as Vice Premier Dīng Xuēxiáng 丁薛祥 with a “high-level delegation from Turkmenistan,” Politburo Standing Committee member Lǐ Xī 李希 met with Kenyan President William Ruto.

Finally, Vice President Hán Zhèng 韩正 met with former British Prime Minister Tony Blair

• China-Palestine bilateral trade currently stands at a lowly $158 million, around 99% of which are Chinese imports. A free trade agreement proposed in 2018 has made little progress.
• But the two sides boosted their diplomatic relations during a visit by Palestinian leader Mahmoud Abbas to Beijing in June this year, with Xí Jìnpíng 习近平 reaffirming China’s commitment to Palestinian statehood and peace talks, and Abbas signing off on a statement that “Xinjiang-related issues are not human rights issues, but issues of anti-terrorism, de-radicalization, and anti-separatism.”

The outbreak of war has thrown a wrench in Beijing’s efforts to mediate peace in the region. In trying to stay neutral in the Israel-Hamas war, China has angered Israel.

• China has not condemned Hamas’s attack, and refuses to label it a terrorist organization. There is “an underlying suspicion and distrust among some Israelis, owing to China’s historic solidarity with the Palestinians,” says Guy Burton, author of China and Middle-East Conflicts.
• Other observers note China’s hypocrisy in attempting to be a diplomatic heavy-hitter while maintaining a non-interference policy for itself.

China walks a fine line in its relationship with Palestine. Alex Colville tries to make sense of it in this week’s China Ties.

Those were the subjects of an interview with James M. Zimmerman, author of The Peking Express: The Bandits Who Stole a Train, Stunned the West, and Broke the Republic of China, which recounts the story of a train from Shanghai to Beijing that was hijacked in 1923.

• The more than 300 passengers on board — including 30 of the richest foreigners living in China at the time — were kidnapped by a gang led by bandit and revolutionary Sun Meiyao (孫美瑤 Sūn Měiyáo).
• Zimmerman is a lawyer who has lived and worked in China for more than 25 years where he has advised companies and individuals who have to deal with the hard end of China’s political and legal systems.

We recently chatted via video call about his new book, China’s economy, and how safe it is to do business in China. Click through for a lightly edited transcript of our conversation.

Jeremy Goldkorn

• China’s three-child policy, introduced two years ago, is not boosting the country’s flagging fertility rate. Newly released data paints a bleak picture of China’s demographic woes, and has prompted calls from population experts for the government to beef up incentives to encourage childbirth.

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

BUSINESS AND TECHNOLOGY:

U.S.-China tech war
The Commerce Department updates its policies to stop China from getting advanced computer chips / AP
“The Commerce Department on Tuesday updated and broadened its export controls to stop China from acquiring advanced computer chips and the equipment to manufacture them.”
U.S. to cut China off from more Nvidia advanced chips / Nikkei Asia (paywall)
U.S. tightens rules on AI chip sales to China in blow to Nvidia / FT (paywall)
U.S. tightens China’s access to advanced chips for artificial intelligence / NYT (paywall)

Volkswagen in Xinjiang
Volkswagen picks firm for Xinjiang site labor audit / Reuters
“Volkswagen investors at a shareholder meeting in May demanded that the carmaker request cooperation from its joint venture partner to conduct an independent audit of labor conditions at the site in Xinjiang, a region where rights groups have documented abuses including mass forced labor in detention camps.”

Electric vehicles
Slowing Chinese EV demand drives down battery metal prices / FT (paywall)
“Prices for key battery materials such as lithium, cobalt and nickel have fallen sharply this year as electric vehicle sales in China cool off and a surge in supply hits the market.”

AI
Alibaba, Tencent join funding for Chinese AI high-flyer / Caixin (paywall)
“Alibaba Group Holding Ltd. and Tencent Holdings Ltd. have joined a $300 million financing round for Baichuan, one of scores of Chinese AI startups hoping to capitalize on a surge of interest in developing ChatGPT-like services.”

Apple
Apple CEO Tim Cook makes second China visit in 2023 amid tough iPhone 15 market and App Store controversy / SCMP (paywall)
“Apple chief executive Tim Cook last week made a low-key visit to mainland China – his second trip to the country this year, following a week-long whistle-stop tour in March – as the US technology giant pursues expansion initiatives amid regulatory scrutiny and slow economic growth in one of its best-performing markets.”

Baidu
Baidu touts upgraded Ernie AI tech as just as good as ChatGPT / Nikkei Asia (paywall)
“Chinese search giant Baidu says the latest version of its generative artificial intelligence technology is as good as OpenAI’s GPT 4, though the general public is not able to try it out just yet.”

SCIENCE, HEALTH, AND ENVIRONMENT:

Wildlife
New Guangzhou regulations set to curb harmful wildlife releases / Sixth Tone
“In a first for China, the new law prohibits the release of foreign wildlife, with certain species like the alligator gar and plecos explicitly listed. But native species can be set free with prior government approval.”

POLITICS AND FOREIGN AFFAIRS:

BRI
Here are the key leaders joining the Belt and Road forum and their wish lists to Beijing / AP
“China is hosting its third international forum centered around President Xi Jinping’s signature policy, the Belt and Road Initiative, which over the past 10 years has built infrastructure across continents, burdening some smaller countries with debt.”
How China’s Belt and Road Initiative is changing after a decade of big projects and big debts / AP
“China’s Belt and Road Initiative looks to become smaller and greener after a decade of big projects that boosted trade but left big debts and raised environmental concerns.”
China’s Belt and Road Initiative to get a hi-tech boost, with ‘wealth of opportunities’ promised for partners / SCMP (paywall)
“China will prioritize hi-tech and new energy in its plans for the Belt and Road Initiative – sectors it views as critical to powering domestic growth over the long run and consolidating its footing in the global supply chain, senior officials said on Tuesday.”
Chinese President Xi Jinping kicks off belt and road forum with diplomatic charm offensive / SCMP (paywall)
“Chinese President Xi Jinping rolled out the red carpet for world leaders, including his Russian counterpart Vladimir Putin, for China’s biggest diplomatic charm offensive of the year at the start of the belt and road forum on Tuesday.”
Belt and Road Forum kicks off with Xi Jinping to lay out new pitch / Nikkei Asia (paywall)
Vice Premier stresses sustainable debt for Belt and Road / Caixin (paywall)

Travel restrictions on Chinese citizens
China tightens curbs on foreign travel by bankers, state workers / Reuters
“Chinese civil servants and employees of state-linked enterprises are facing tighter constraints on private travel abroad and scrutiny of their foreign connections, according to official notices and more than a dozen people familiar with the matter, as Beijing wages a campaign against foreign influence.”

Taiwan
U.S. should be ‘peacemaker’ between Beijing and Taipei, Ma Ying-jeou says / SCMP (paywall)
“Ma made the remarks in New York on Monday, saying such dialogue would also be conducive to avoiding further confrontation between Washington and Beijing, and to preventing Taiwan from becoming the next Ukraine.”

U.S.-China competition and tensions
U.S.-China ties: focus on national security ‘not healthy’, head of advisory body says / SCMP (paywall)
Opinion: Recent warming in U.S.-China ties will not last long / Nikkei Asia (paywall)
Ian Bremmer writes: “In recent weeks, U.S. and Chinese officials have proved more willing to talk. This is good news for both countries and for the global economy.”

Israel-Hamas conflict
Global South, sympathetic to Palestinians, aligns with China as US seeks support for Israel against Hamas in Gaza / SCMP (paywall)
“With supporters clutching small Palestinian flags behind him and a traditional Palestinian scarf draped over his shoulders, South African President Cyril Ramaphosa appeared at a public rally in Boksburg on Saturday, voicing deep concern about ‘the atrocities that are unfolding in the Middle East.’”
Chinese embassy in U.S. warns students against joining protests over Israel-Hamas conflict / SCMP (paywall)
“​​The Chinese embassy in the United States has advised Chinese students to stay away from protests related to the conflict between Israel and Hamas.”
Chinese Foreign Minister Wang Yi backs efforts to give Palestinians their ‘legitimate national rights’ in call with Egyptian counterpart / SCMP (paywall)

Indonesia
China’s Xi wants to expand cooperation with Indonesia in several key markets / Reuters
“China is willing to expand and strengthen cooperation with Indonesia in emerging industries such as the digital economy, photovoltaics and new energy vehicles, President Xí Jìnpíng 习近平 said on Tuesday.”

Serbia
China’s Xi seeks to promote stronger ties with ‘ironclad friend’ Serbia / Reuters
“China’s President Xi Jinping on Tuesday met Serbian President Aleksandar Vucic in Beijing, calling the country an ‘ironclad friend’ and urging stronger strategic coordination between them.”

India
Opinion: How India’s unspoken strategy to drive out Chinese firms can backfire / SCMP (paywall)
Christopher Tang writes: “It is commonly believed that it is difficult for Western firms to operate their business operations in China. However, it is even more challenging for firms to operate in India, especially for Chinese firms.”

Papua New Guinea
China’s Xi supports stronger international role for Papua New Guinea / Reuters
“China’s President Xi Jinping said the country supports Papua New Guinea in playing a greater role in international and regional affairs, and is willing to strengthen ties, state media reported on Tuesday”

Russia
Putin begins visit in China underscoring ties amid Ukraine war and Israeli-Palestinian conflict / AP
“Russian President Vladimir Putin arrived in Beijing on Tuesday for a visit that underscores China’s support for Moscow during its war in Ukraine as well as Russian backing for China’s bid to expand its economic and diplomatic influence abroad.”
Putin visits ‘dear friend’ Xi in show of no-limits partnership / Reuters
Putin, in China for Belt and Road Forum, brings high hopes for deals / Nikkei Asia (paywall)
Vladimir Putin visits Beijing for first time since Russia’s invasion of Ukraine / FT (paywall)
Putin and U.N. chief to speak at Belt and Road forum / Caixin (paywall)
“Russian President Vladimir Putin and United Nations Secretary-General Antonio Guterres are among representatives from more than 140 countries and some 30 international organizations set to gather for the Third Belt and Road Forum for International Cooperation, which kicked off in Beijing Tuesday.”

SOCIETY AND CULTURE:

LGBTQ
Hong Kong court rules that gay couples get equal housing rights / Reuters
“A Hong Kong court on Tuesday dismissed a government bid to deny same-sex married couples the right to rent and own public housing saying that it was ‘discriminatory in nature’ and a complete denial of such couples’ rights.”

Soccer
China’s scandal-plagued soccer authority appoints new president / Caixin (paywall)
“The Chinese Football Association (CFA) has named Liaoning provincial sports bureau chief Sòng Kǎi 宋凯 as its new president during a leadership reshuffle, as the organization seeks to turn a new page in its scandal-plagued history.”

Esports
What it will take for Esports to go mainstream in China / Caixin (paywall)
“For hundreds of millions of esports fans in China, the Chinese national team winning the first esports gold medal at the Asian Games was a landmark moment in the country’s gaming history.”