Family member of Israeli embassy staffer stabbed in Beijing

• The Israeli Foreign Ministry said in a statement that the victim, 50, is receiving medical treatment and is in stable condition. Beijing police arrested the suspect, a 53-year-old foreign man whose nationality has not been publicized.
• No motive has been reported, and it is unclear if the attack was connected to the war between Israel and Hamas.
• The Chinese Foreign Ministry has acknowledged the incident, expressing sympathy with the victim on Friday, then saying at a press briefing today, “China will continue to take effective measures to protect the security and safety of foreign institutions and personnel in China.”

Meanwhile, China’s top diplomat Wáng Yì 王毅 called for a “ceasefire” in the conflict between Israel and Hamas during a meeting with Russian Foreign Minister Sergei Lavrov in Beijing today, Chinese state media reported.

• In a phone call yesterday, Wang told Saudi Arabian Foreign Minister Faisal bin Farhan Al Saud that “Israel’s actions have gone beyond self-defense” and called on the country to “stop its collective punishment of the people in Gaza.”
• Wang reiterated calls to end the violence that may “undermine regional peace” in a separate call with his Iranian counterpart Hossein Amir-Abdollahian. “China supports Islamic countries in strengthening unity and coordination and speaking with one voice on the Palestinian issue,” Wang added.
• There has not been any official Chinese condemnation of the Hamas attacks and hostage-taking of October 7 that killed more than 1,400 people.

Jeremy Goldkorn

A slew of top dignitaries have started to arrive in Beijing for the third Belt and Road Forum for International Cooperation on October 17–18, which Xí Jìnpíng 习近平 will attend. The Chinese capital has beefed up security measures by stationing police and other guards around the forum’s venue at China National Convention Center and in Liangmaqiao, home to many embassies in the city, and has also banned the use of civilian drones.

World leaders including the prime ministers of Thailand and Cambodia and the presidents of Indonesia and Kazakhstan touched down in Beijing today. The Taliban will also make a rare appearance, a spokesperson announced on October 14, signaling China’s growing ties with Afghanistan’s ruling regime despite the fact that no country has formally recognized its government.

But the top of the forum’s guest list is Russian President Vladimir Putin, whose expected arrival will mark his first trip to a major country since the International Criminal Court (ICC) issued a warrant for his arrest for “unlawful deportation of population (children) and that of unlawful transfer of population (children) from occupied areas of Ukraine to the Russian Federation.” It’s also the first time Putin will visit China since he agreed to a “no limits” partnership with Xi on the sidelines of the Winter Olympics just 20 days before the Russian invasion. Scroll down for more on the BRI.

The U.S. plans to tighten up China’s access to advanced semiconductors and other chipmaking equipment, Bloomberg reports, building on the sweeping measures imposed by the Biden administration last October.

The planned measures, expected to be announced next week, are aimed at strengthening controls on the sale of graphics chips used in artificial intelligence (AI) and advanced chipmaking gear. They also include additional checks on Chinese firms that attempt to evade U.S. export restrictions by routing shipments through other nations, as well as adding Chinese chip design companies to its trade restriction list.

U.S. Treasury Secretary Janet Yellen and People’s Bank of China governor Pān Gōngshèng 潘功勝 had “substantive and productive” talks in Marrakech, Morocco, on October 13, according to the U.S. press readout. It’s the latest in a series of high-level meetings between U.S. and Chinese officials, aimed at paving the way for a potential meeting between Xi and U.S. President Joe Biden next month.

Meanwhile, the ex-chairman of Bank of China was arrested for suspected bribery and doling out illegal loans, Chinese state media reported today. Last week, China’s Central Commission for Discipline Inspection (CCDI) announced that Liú Lián’gě 刘连舸, 62, was expelled from the Communist Party for allegedly conducting illegal activities and taking bribes.

Former Alameda Research CEO Caroline Ellison testified that the crypto trading firm bribed Chinese officials with $150 million to unfreeze funds that had been locked on Chinese exchanges.

Weeping on the witness stand during the Sam Bankman-Fried trial last week, Ellison said that they had attempted to use Thai prostitutes’ identities to trade billions of dollars’ worth of funds, which were frozen in early 2021 when FTX was being investigated by Chinese officials for money laundering. The bribe resulted in their Alameda trading accounts on OKX and Huobi in China being unlocked in November 2021.

Chinese state media: Xinhua News Agency’s top story today is a short announcement that Xí Jìnpíng 习近平 will attend the opening ceremony of the third Belt and Road International Cooperation Summit Forum and deliver a keynote speech that will be broadcast live.

The People’s Daily’s front page led with a piece on the Belt and Road Summit titled: “Opening up a ‘road to happiness’ that benefits all countries and the world,” and an announcement that the Chinese Communist Party’s theoretical journal Qiúshì 求是 will publish an “important article by General Secretary Xi Jinping [about] adapting Marxism to China and the times.”

• Confusingly, it’s the “belt” — the Silk Road Economic Belt (SREB) — that goes overland, and the “road” — 21st Maritime Silk Road (MSR) — that goes by sea.
• The MSR consists of three “blue passages”: 1) China through the Indian Ocean to Africa and the Mediterranean; 2) China to the South Pacific; and 3) China-Europe via the Arctic.

Beijing aspires to a leading position on the high seas. This has made multiple countries uncomfortable, for different reasons.

• China’s overseas port facilities are for commercial use, but the U.S. fears that they might easily be upgraded to carry out military missions.
• Fears in Europe about China’s port expansion have been focused closer to home. The main concern is regarding the influence Beijing could leverage through its control of critical infrastructure.

In 2019, Mardell spent a year traveling overland from the U.K. to Vietnam, visiting Belt and Road projects and talking to people about the impact of China’s ambitions. This year, he marked the BRI’s anniversary by heading back out on the road to see what has changed. Click through to read what he’s learned.

Jacob Mardell

The 14th National People’s Congress (NPC) will hold its 6th legislative meeting on October 20–24, and it might see the announcement of a new Defense Minister.

The third Belt and Road International Cooperation Summit takes place in Beijing from October 17–18. The theme for the summit is “High-quality Belt and Road Cooperation: Together for Common Development and Prosperity.”

• China’s President Xí Jìnpíng 习近平 will attend the opening ceremony and deliver a keynote speech, and hold a welcoming banquet and bilateral events for guests.
• Russian President Vladimir Putin will meet with Xi on the sidelines of the event. This marks the first time he has left Russia since a warrant for his arrest on alleged war crimes was issued by the International Criminal Court.
• French President Emmanuel Macron will send former prime minister and long-time China friend Jean-Pierre Raffarin to attend.

Other notable trips:

• Enrique Mora, chief of staff for the EU’s top diplomat Josep Borrell, will be in Beijing this week. He will take part in follow-up talks that began last week. He is expected to discuss a number of regional issues.
• California’s governor Gavin Newsom is expected to visit China either this week or next. He plans to discuss potential cooperation on climate policies with Chinese counterparts.

There are several United Nations events this week, too. Click through to read about them and other political and business happenings this week.

Arran Hope

• This week the Sinica Podcast is a live recording with Chang-Tai Hsieh of the Booth School of Business at the University of Chicago, Damien Ma of the Paulson Institute’s think tank MacroPolo, and The China Project’s own Lizzi Lee. Host Kaiser Kuo talks to them about how best to gauge the peril that the Chinese economy now faces from slow consumer demand, high youth unemployment, a troubled real estate sector, and mountains of local government debt.You can wait for the general podcast release on Thursday, or you can get the ad-free, subscriber-only version of Sinica using any major podcast app on your phone by following the instructions at this link.

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
IMF warning on China puts ‘Japanization’ risk in spotlight / Reuters
“Hiroshi Watanabe, Japan’s former top currency diplomat, recalls how Chinese policymakers eagerly studied ways to avert a Japan-style burst of an asset bubble that led to prolonged deflation and economic stagnation — until around 2015.”
China’s economy remains shaky after challenging summer / WSJ (paywall)
“Lackluster inflation and declining trade numbers in China have stoked concerns that the world’s second-largest economy is still on shaky footing, despite recent signs of stabilization.”

Consumer spending and Singles’ Day
Alibaba, JD.com locked in brutal price war this Singles’ Day amid weak consumer spending in China / SCMP (paywall)
“Alibaba Group Holding’s Taobao & Tmall Group is defending its dominance in China’s ecommerce market by offering consumers massive rebates and discounts during this year’s Singles’ Day shopping season, putting a brave face on a price competition against rivals JD.com and Pinduoduo.”

Credit easing and liquidity
China ramps up liquidity support to banking system / Reuters
“China’s central bank ramped up liquidity support to the banking system as it rolled over medium-term policy loans on Monday, but kept the interest rate unchanged amid concerns about the risk of more sharp yuan declines.”
China to discuss advancing 2024 bond quota as local authorities struggle for liquidity / SCMP (paywall)
“Amid efforts to tackle local government debt and stressed regional banks as financial stability has jumped high on Beijing’s agenda, China’s lawmakers will meet later this week to discuss front-loading its 2024 bond quota.”
China tells lenders to pour money into car loans, consumer credit / Nikkei Asia (paywall)
“China’s top financial regulator urged lenders to dramatically expand lending to a broad swath of businesses, help consumers buy more cars and create consumer credit products to help new college graduates.”

Banking fraud in Hong Kong
Hong Kong takes aim at banking fraud as complaints surge / Caixin (paywall)
“Hong Kong’s de facto central bank said it received almost twice as many complaints related to banking fraud in the first nine months of 2023 as it did during the entire previous year.”

Foreign businesses in China
Shanghai mayor meets foreign business leaders, vows further support / Sixth Tone
“The city’s economy is recovering well following the pandemic, according to the mayor.”

U.S.-China tech war
Shenzhen trip, DJI visit by China’s vice-premier offers ‘no-limits support’ amid US tech curbs / SCMP (paywall)
“A first trip to Shenzhen, a key technology hub in the Greater Bay Area, by China’s executive vice-premier signaled Beijing’s strong hopes for the city and the region to help break intensifying US technological containment efforts, analysts said.”

Exports and imports
China’s exports and imports sink in September as global demand falters / AP
“China’s exports and imports both fell in September from a year earlier, though they contracted at a slower pace than the month before even as global demand remained muted.”

Real estate and property development
China bet it all on real estate. Now its economy is paying the price. / NYT (paywall)
“After relying on a borrow-to-build model for decades, Beijing must make difficult choices about the country’s housing market and economic future.”

Evergrande
How Evergrande’s chief tried to turn things around—and failed / WSJ (paywall)
“After seeking government help, the property developer made promises to Chinese citizens that it didn’t keep.”

SCIENCE, HEALTH, AND ENVIRONMENT:

Infectious diseases
1 in 4 adult deaths in Hong Kong public hospitals related to sepsis, study finds, prompting calls for early diagnosis and treatment of condition / SCMP (paywall)
“One in four adult deaths in Hong Kong public hospitals between 2009 and 2018 was related to sepsis, a university study has found, triggering calls from researchers for early diagnosis and treatment amid rising incidence and mortality rates.”

POLITICS AND FOREIGN AFFAIRS:

Propaganda: Xi Jinping Thought on Culture
China officials hasten to implement Xi’s doctrine on culture and propaganda / SCMP (paywall)
“Officials around China have pledged to implement President Xí Jìnpíng’s 习近平 recently released ideology on culture and propaganda, in a fresh push for content control and Beijing’s global soft power.”
Xi Jinping’s cathedral of pretense / China Media Project
“With the addition of a grandiose new buzzword in China for culture and civilization, it may seem that a towering future is on the horizon. We take a hard look at the foundations of ‘Xi Jinping Thought on Culture.’”

Corruption
Sports personality’s disappearance linked to bribery probe, source says / Caixin (paywall)
“Widely known sports media personality Duàn Xuān 段暄, a former soccer commentator for state broadcaster CCTV, has disappeared from public view for the last several months, and industry insiders told Caixin that he is linked to a bribery case involving a former official in charge of the country’s Olympics 2022 preparations.”

BRI
Taliban to join China’s Belt and Road forum, elevating ties / Reuters
“The Taliban will attend China’s Belt and Road Forum next week, a spokesman said on Saturday, underscoring Beijing’s growing official ties with the administration, despite its lack of formal recognition by any government.”
Leaders gather in China for smaller, greener Belt and Road summit / Reuters
“When China launched its Belt and Road Initiative 10 years ago, it touted huge infrastructure spending linking it with Western Europe, which as recently as 2019, Britain’s then-finance minister said had ‘tremendous potential to spread prosperity and sustainable development.’”
Putin sees Belt and Road Initiative as China’s desire to cooperate / Reuters
“Russia President Vladimir Putin said that he sees China’s Belt and Road Initiative (BRI) as a desire to cooperate on the global arena, Russian and Chinese news agencies reported on Sunday.”
Chinese capital steps up security ahead of start of Belt and Road forum / SCMP (paywall)
Belt and road forum ‘a showcase’ for China’s growing global influence / SCMP (paywall)
Is China’s Belt and Road Initiative running out of steam? / SCMP (paywall)
China’s Belt and Road came at ‘right time’ for Africa, says AU official / Nikkei Asia (paywall)
China’s Belt and Road Forum to illuminate scope of Russia ties / Nikkei Asia (paywall)
“Russian President Vladimir Putin is due in China this week for a high-stakes visit that should signal the strength and scope of the countries’ ‘no limits’ friendship.”’
Opinion: BRI is only first step in China’s strategy for a new world order / Nikkei Asia (paywall)
Niva Yau writes: “From the beginning, China branded the Belt and Road Initiative as a strategy to boost global connectivity.”
China reboots its Belt and Road Initiative / WSJ (paywall)

Taiwan and South Korea
Fearing China, South Korea targets firms building Taiwan navy submarines / Reuters
“South Korean authorities cited the risk of Chinese economic retaliation when they charged marine technology firm SI Innotec last year with violating trade laws for its work on Taiwan’s new military submarine program, according to a police document seen by Reuters and two people familiar with the matter.”

Israel-Hamas conflict
China calls for ceasefire in Israel, suggests mediation at meeting with Russia / Reuters
“China’s foreign minister on Monday called for a ceasefire to halt the bloodshed in Israel, suggesting at a meeting with his Russian counterpart that major world powers should work to avoid a humanitarian disaster.”
China’s Foreign Minister calls US Secretary of State on crisis in Israel and Gaza / Reuters
“China’s Foreign Minister Wang Yi spoke with U.S. Secretary of State Antony Blinken by phone on Saturday on the crisis in Israel and Gaza, a statement from his ministry said.”
Israel-Hamas war upends China’s ambitions in the Middle East but may serve Beijing in the end / AP
“In June, Chinese President Xi Jinping hosted the Palestinian president in Beijing and invited the Israeli prime minister for an official state visit. Benjamin Netanyahu accepted, and China was on track for a bigger role in the region.”
Israel-Hamas war: Chinese social media erupts in war of words as Palestine crisis divides opinion / SCMP (paywall)
“The deadly Israel-Hamas conflict has sparked a war of words on Chinese social media, with the mix of online nationalism and anti-US sentiments reminiscent of reactions to the Ukraine war.”
Opinion: On Israel-Hamas conflict, are US Republicans ready to stand with China? / SCMP (paywall)
Robert Delaney writes: “With Beijing likely to refrain from condemning Hamas, the Republican Party may find itself aligned with China, a country it demonizes at every turn.”
China’s top diplomat Wang Yi meets Russian minister Sergey Lavrov, urges UN Security Council action / SCMP (paywall)
China Middle East envoy meets Arab League on Gaza crisis / Nikkei Asia (paywall)
Israel should stop ‘collective punishment’ of Gaza, Wang Yi says / Caixin (paywall)
Israel-Hamas war tests China’s Middle East ambitions / FT (paywall)

North Korea
Activists slam China after alleged forced repatriation of North Koreans / VOA
“Human rights activists are criticizing China after reports that Beijing forcibly returned more than 500 North Korean defectors.”

EU
EU warns China that European public could turn more protectionist if trade deficit isn’t reduced / AP
“The European Union’s top foreign policy official warned Friday that public sentiment in Europe could turn more protectionist if the region’s trade deficit with China is not reduced.”
Borrell calls on China to treat EU as a ‘geopolitical power’ in its own right / FT (paywall)
“The EU has called on China to take it seriously as a geopolitical power in its own right rather than look at the bloc ‘through the lens’ of its ties with third powers, in a veiled reference to accusations from Beijing officials that Brussels follows the US on security issues.”

Central Asia
Russia, China, U.S. and more woo Central Asia with summit diplomacy / Nikkei Asia (paywall)
“A recent flurry of summits with Central Asian leaders by Russia, China, the U.S. and Germany underscores the intensifying battle for influence in a region expected to play an increasingly important role in international trade.”

Nepal
China got a big contract. Nepal got debt and a pricey airport. / NYT (paywall)
“China called the project a ‘signature’ of its cooperation with Nepal. Insiders and documents reveal the pitfalls of China’s infrastructure-at-any-cost model.”

Chile
China’s Tsingshan plans $233m lithium investment in Chile / Nikkei Asia (paywall)
“China’s Tsingshan Holding Group will invest $233.2 million to set up a plant in Chile to produce lithium iron phosphate (LFP), used to power electric vehicles, Chilean President Gabriel Boric said on Monday.”

South Korea
South Korea says it expressed concern to China for sending North Korean escapees back home / AP
“South Korea on Friday said it had expressed its concerns to China after assessing that it recently returned a ‘large number’ of North Koreans, including escapees, back to their homeland.”

Japan
Chinese boycott beauty products after Fukushima water discharge / FT (paywall)
“Online sales of Japanese-made cosmetics in China have taken a hit after shoppers started boycotting beauty brands following Japan’s decision to release radioactive water from its stricken Fukushima nuclear plant into the Pacific Ocean.”

Russia
What to watch for at Xi’s meeting with Putin / Reuters
“Russian President Vladimir Putin will travel to China this week to meet Xí Jìnpíng 习近平, the Kremlin chief’s first trip outside the former Soviet Union this year.”
Russia-China energy cooperation in focus as Putin visits Xi / Reuters
“Since the start of the Ukrainian conflict, Russia, a leading global oil producer, has cemented its energy ties with China, the world’s No. 2 oil consumer after the United States.”
China’s top diplomat Wang Yi meets Russia’s Lavrov / Reuters
“China’s top diplomat Wáng Yì 王毅 met with Russian Foreign Minister Sergei Lavrov on Monday, Chinese state media CGTN reported.”
Putin to visit China to deepen ‘no limits’ partnership with Xi / Reuters
Putin says suggestions of U.S. war against Russia and China are nonsense / Reuters

Philippines
Philippines demands China halt “dangerous and offensive” actions in S.C. Sea / Reuters
“The Philippine military has demanded China stop ‘dangerous and offensive’ actions in the South China Sea, after a Chinese navy ship shadowed and attempted to cut off a Philippine navy vessel conducting a resupply mission late last week.”

SOCIETY AND CULTURE:

Child policy
China’s two-child policy runs out of gas / Nikkei Asia (paywall)
“Fewer Chinese families gave birth to a second child last year, signaling the fading effects of China’s two-child policy initiated in 2016.”

Education
Read more, test less: An elementary principal’s endeavor in rural China / Sixth Tone
“In Boluochi, a rural town in Chaoyang County in the northeastern Liaoning province, an abandoned cafeteria that has been converted into a school library stands as the result of Boluochi Elementary School principal Zhao Guobin’s endeavor over the course of 13 years.”

Music
The Chinese musicians making melodies out of nothing — and everything / Sixth Tone
“China’s latest social media challenge has creators fashioning instruments out of everything from carrots to screwdrivers.”

Life coaching
In China, life coaches are seeing booming demand from Gen-Zers / Sixth Tone
“Just a few years ago, life coaching was a tiny industry in China. But the profession is now rapidly going mainstream.”